Bad Credit Home Loans: Myth Or Fact
In a bad credit home loan, you can get the best option in loans in spite of a bad credit rating but just spending a little time in comparing what various lenders are offering. Bad credit home loans have become a good option for those who suffer from bad credit but want to refinance their mortgage or go in for a new home equity loan.
A myth still prevails that it is difficult to grab a home loan with a bad credit. Bad credit is indeed a stumbling block in grabbing loans but it is not true that no loans can be grabbed with a poor credit score. There are several reasons that lead towards bad credit and the creditors are well aware about all these. During last few years we have witnessed a constant job cuts and a slump in the economy.
Myth: You need to put 20% down to buy a home.
There are many types of mortgage products and programs that allow low and no down payments. But remember to factor in other costs such as closing costs, property taxes, moving expenses, and repairs. Maple Tree Funding reviews each scenario with you explaining each option and helps you choose the best mortgage for your needs. Our Loan Officers will be with you every step of the way.
Myth: A 100% home loan means no money up front.
Applying for a 100% home loan does require you to have funds to complete the purchase. A lender has nothing to do with fees such as, conveyancer costs, council rates, registration of title, stamp duty etc. In most cases these fees will add up to approximately 5-6% of the purchase price. These fees are unavoidable and your lender will not fund this portion to you.
The credit bureaus are required by law to keep derogatory items on your credit report for 7 to 10 years. There are absolutely no laws requiring credit bureaus to report anything on you at all. In fact, the exact opposite is true: There are laws that require credit bureaus to automatically remove all derogatory items older than 7 years or in the case of a bankruptcy, 10 years.
You don’t have to be over concerned if you have bad credit and need a home loan. The reason is that a bad credit home loan is available today from a number of sources. Chief among the sources for a bad credit home loan is of course the Internet. Any number of online loaning companies is willing to provide you with a loan despite your bad credit. And these loans can come in the form of mortgages, credit cards or simply a personal loan. Years ago anyone holding bad credit had no way of obtaining accepted loans without going to the loan sharks in the underworld.
