Nearly 52% of Americans don’t realize that bad credit can impact how much you pay for your phone bill, utilities, and car insurance.
Many people don’t even realize they have bad credit until they go to apply for a loan or a mortgage. Thankfully, there are bad credit mortgage lenders available for people who face this issue.
For example, you might think recent college graduates and recent military graduates would have stellar credit, but if they took out loans or didn’t build a history, they don’t. Credit takes years of building through having even low-balance credit cards. It means never missing a payment and never biting off more than you can chew financially.
If you’re looking at bad credit mortgage lenders, it can be hard to tell which one can work for you. Here are three things to look for when you find one.
When you’re on the hunt for someone to help you afford a home with bad credit, don’t take the first offer that comes your way. An experienced mortgage broker will be more than happy to share their accomplishments with you.
Comb through their website and look for details that resonate with your situation. Look at Yelp, Google My Business, and Angie’s List and keep an eye out for any red flags. Beyond avoiding someone who might be hard to work with, look for reviews that paint the lender as having been able to succeed where others could not.
Reading through their reviews should also tell you something about their customer service strategy. Avoid a lender who seems hard to get on the phone or who does not answer emails. When you find a home that you want and fits within in your range, you need to be able to act fast.
Someone who isn’t receptive, friendly, and focused on strong customer service isn’t worth your effort. Find someone who sincerely wants to see you in the home of your dreams. They can help you negotiate the perfect rate for your budget.
A mortgage lender that doesn’t seem to have a handle on the local market isn’t worth working with. If they say they can’t find a mortgage loan in your range, it means they don’t want to or don’t have the resources to. Move on and find a lender who can work with you.
A good mortgage lender, especially one who deals with bad credit, knows how to get you what you need in the timeline you need it.
Even though you might have resigned to the fact that you might never be able to afford a home with bad credit, it’s not true. A mortgage lender who has experience working with people with bad credit can ensure you get into the home you need on the budget you have.
If you want to know more about bad credit mortgages themselves, check out our guide for more information.