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By
Matt Clarkson
There are literally hundreds of home loans available but lets just look at the
three main categories.
There are the Purchase Home Loans, where you are looking at buying a new home.
You have the Refinance Home Loans where you could already be in a home but
want to find a better deal.
And you have the Home Equity Home Loans, where you want to tap into the equity
you have sitting in your home that you can use for something else.
Some things to think about when looking at home loans is the amount you want
to borrow, the amount of monthly your repayments, whether you have good
credit or bad credit history? Do you want an interest only home loan? What
about being self-employed?
You might need one of the no doc/low doc home loans?
Here’s a list of the types of home loans available but you’re best off getting
more advice on them to understand them all completely.
Fixed- Rate Mortgages, Adjustable Rate Mortgages, Two-Step Mortgage,
Convertible adjustable-rate mortgages, Balloon Loans, Graduated Payment
Mortgages, Reduced down payment loans, Buy down Loans, Bridge Loans.
The information in your credit history helps mortgage lenders decide how much
credit and what interest rate you are eligible for, and then match it to a
bad credit home loan. The better your credit history, the more likely you are
to qualify for the best credit deals.
The first step is to understand if you are considered a credit risk. Most
lenders will consider you a higher credit risk only if your credit report
states that you have more late and slow payments than what is shown below:
Revolving credit (i.e. credit cards): No payments 60 days or more past due and
no more than two payments
30 days past due.
Installment credit (i.e. car loans): No payments 60 days or more past due and
no more than one payment 30 days past due.
Housing debt (i.e. mortgages and rent): No payments past due. This can be
proven by providing (borrower`s) canceled checks for the past 12 months or a
loan payment history from the mortgage service.
OK, so you have bad credit, but how bad is it? The very first step to
obtaining a bad credit home loan is to obtain a credit report, along with
your credit scores. There are 3 main credit reporting agencies used by the
mortgage Industry and they too will usually pull a credit report. Then the
credit score contained within the credit report is used to determine your
credit worthiness. And all this will determine which of the bad credit home
loan products would suit you.
Matt Clarkson is a specialist in both traditional and online business that has
years of experience in borrowing money and investing for capital growth.
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