Home loans
It seems that there are a limitless number of companies offering home loans, each claiming to offer the lowest interest rates and best contract terms.
For borrowers, this means it pays to shop around. Save yourself money in the long-run by researching various lenders to find out who offers the best rates.
Most lenders who specialize in mortgage loans base the loan provisions on the borrower’s credit score… this is good news for people with good or excellent credit, but worries those with bad credit or little credit history. Borrowers with excellent credit can expect to pay the most competitive market interest rate, while borrowers with less than stellar credit can expect to pay a higher interest rate, and possibly higher fees.
Poor credit?
Lenders realize that some home buyers have imperfect credit and offer bad credit home loans. These home loans typically cost the borrower more in the long run, but by shopping around and considering a longer loan term loan (30 years) borrowers with bad credit can often obtain a sizable loan with reasonable monthly payments.
Our top pick home loan lenders:
- - Banks compete for your business (bad credit loans available)
- ING Direct - Great rates! 5.25%
- Credit & Debt Financing - Low interest lender, specializes in bad credit loans
- www.FirstAgain.com - Anything loans… home, boat, pool, timeshares (anything!)
By shopping around for lenders, it is definitely possible to finance a home despite a poor credit history. It is important to realize, though, that bad credit home loans come with greater interest rates and fees than home loans for those with good credit ratings.
You must decide how much a home is worth to you both as a long-term investment and for your quality of life. In most cases, it is in your best interest to invest in a home rather than pour money down the drain in rental payments. The benefit of a home loan is it will allow you to take incremental steps towards home ownership without breaking the bank. If you are still undecided, try using our loan calculator and mortgage calculator (right-hand navigation panel) to estimate your monthly payments on various loan amounts.
