Do You Qualify For Subprime Loans?
When it comes to applying for loans, it can seem that numbers do all the talking. Lenders all want to look at your credit scores in order to understand how much of a risk you are. The higher your credit score, the more confident lenders are that you will pay you loans on time. If you have a credit score of 720 or higher, you will qualify for the best rates -- also called prime rates -- at most major banks, credit unions, and financial institutions. You can easily find a loan with a good rate. If you have credit score of 680 to 719, your credit is still considered quite good. You may not get the best rates, but you will still be able to find quite an affordable mortgage or mortgage refinance rate. If your credit score is below 520, you qualify for bad credit mortgage loans.
If your credit score is between 520 and 679, on the other hand, your credit score is a bit ambiguous. Credit scores within this range are considered candidates for sub prime rate mortgages. This means mortgage rates that are 0.1% to 0.6% higher than prime rates. However, depending on which lender you apply with and depending on the amount of collateral you have, you may be able to get to lower rates. If you apply for traditional loans with banks, credit unions, or financial institutions, and you have equity, you may be able to get a home loan or refinance loan. However, traditional lenders may still turn you down if you have no equity or collateral. On the other hand, if you apply with a bad credit lender, you may be considered a better credit risk than most of that lender’s clients, and you may be quoted better rates.
If you think you qualify for sub-prime mortgage rates, your best bet is to research carefully. However, keep in mind that the more lenders you ask for a quote, the lower your credit score can get, since multiple credit checks can lower your credit score temporarily. The best option, then, is Lowest Mortgage Rates. Lowest Mortgage Rates has all the free advice and information you need to make an informed decision. More importantly, Lowest Mortgage Rates uses just one credit check to in order to give you a few carefully chosen quotes from the best mortgage lenders possible for you. This means that you get several free, no-obligation quotes you can compare. It also means that you have several lenders competing for your business and offering their best rates in order to attract your business. With Lowest Mortgage Rates, all the ambiguity is taken out of your credit score, and you end up with the best possible rate.
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