Poor credit alone will not prevent you from getting approved for a new loan. Your credit score will simply impact the amount you can borrow and the specific interest rate. Be smart about how much home you can afford and then work with the right lender and even with a weak credit history, getting approved for a new loan should be very possible.There are a few things to keep in mind when preparing to apply for a new mortgage:
Take advantage of the Internet. Shopping online can help you save a lot of time and money. Quickly and easily find a reputable company to work with, review any of their available programs and then apply. In many circumstances, you could have an answer about your qualification for a new home mortgage in a matter of minutes. It sure beats having to drive around from one bank to another!
Apply with a company that will provide you with multiple competing offers from a few different lenders. There are certain companies that simply require one application and then they in turn will send the application to a few different companies on your behalf. All of those lenders will then review your application and contact you through e-mail with some initial terms and offers. This makes it very easy to review your choices and quickly compare to find the best offer.
Be sure to fill out your application as accurately as possible. Not being truthful or perhaps simply being too aggressive with estimates will end up costing you a lot of time in the end. All lenders will have to verify the information you put on your application so be accurate.
Know how much home you can afford before applying for a new mortgage. Put together a budget so you know for certain how much you can afford to pay each month on a mortgage payment. Run a few numbers to get a sense on an affordable range. The general rule for mortgage affordability is a monthly payment that equals two to three times your gross income.
Start looking for homes sooner than later. Once you know how much you can afford, do some research to determine if there is anything available that fits your budget. There is no sense getting approved for a mortgage loan if your budget is insufficient for the area where you would like to live. Save yourself some time and determine what is available.
Be persistent. Finding a new home and securing a new mortgage takes time. You may not find a home you like initially or you might run in to a few challenges getting approved for a mortgage loan. Stay positive and keep trying.