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How Credit
Scores Affect Your Loan
Application |
If you’re one of the
millions of consumers who have bad credit and want to
buy a home, you no longer have to worry about being
turned down by lenders. Using Subprime loans,
lenders will take into consideration your current
income, any assets in your name, and
your employment record.
When you go to get
a loan for a home, a lender will be evaluating whether
or not you can pay it back – that’s their #1
concern. So what happens if you don’t have a
spotless record? You’ll have to prove that you’re
a good risk.
Cash can be a
powerful negotiating tool. Try to have as large of
a down payment as possible. If this isn’t
realistic for you, don’t worry – you just have to find a
different kind of lender known as “subprime.”
Don’t let the name
fool you – it’s not as bad as it sounds. A
subprime loan is just a tool to give hardworking
individuals who may have had bad luck a second lease on
life – or a new home!
If you don’t
qualify for a conventional loan, a subprime lender will
provide you with an opportunity to finance your home –
but at a much higher interest rate. Even if
you go with a subprime lender, you don’t have to stay
with one forever.
Take a year to
make timely payments and prove to lenders that you’re a
good risk. Then, refinance your home and try to
qualify for a conventional loan. Even if your
credit is marred, shop around for the best Subprime loan
– not every lender will have the same options available
to you.
© 2004 - All Rights Reserved. Apex Personal Loans
Store does not assume any responsibility for the
accuracy or completeness of the above article. Please
consult a financial advisor for specific advice
pertaining to your particular situation.
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