5 Important Things to Know before Applying for Mortgage Lenders for Low Credit Scores in Houston

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You have checked your credit score before applying for a home loan program and found that it is not good enough. Worried about what to do? Well, nowadays, you don’t have to stop dreaming about a home if your credit score is not good enough.

There are mortgage lenders for low credit scores in Houston. You can opt for one of the lenders to get a home loan approval with low credit. But before that, you need to know a few important things. Here are the ones –

You can purchase a home after declaring bankruptcy

Although you will be surprised to hear this, it is the truth. However, once you have claimed bankruptcy, you will have to wait for a certain time to get a new mortgage. During the waiting period, you need to manage all your other credit on time and steer clear of opening too much new credit.

You can get a house after a foreclosure

Have you had a foreclosure? You will have to wait longer than you would after any other credit issue, but you will get a home loan. But before you start discussing your loan with a mortgage lender, you should know the date of the trustee’s sale. Often the credit reports don’t use the date when the property was finally foreclosed. Instead, they use the date when the foreclosure was started. The period of foreclosure can differ from states to states. If extenuating circumstances were leading up to the foreclosure, including illness or job loss affecting the household’s primary earner, there may be exceptions allowing you to get a loan sooner.

You can refinance a bad credit home loan

Even if you have had a bad credit score, you can still refinance your loan. However, does it actually make sense? One of the crucial reasons to refinance your mortgage is to get a lower interest rate. But bad credit can delay your access to the lowest rates. In such a circumstance, the best option will be to find the lowest rate offered to you and work with a mortgage lender to improve your credits as much as possible.

You can come with a co-signer for the loan

When your credit score is not up-to-the-mark, you can come with a co-signer to ensure easy approval. But you should be careful when asking someone to work as your co-signer. The person who you choose will be liable for your loan in case you miss payments, which puts his or her credit score at risk.

You can get a home loan even with late mortgage payments

Most mortgage loans allow you to have a late mortgage payment or two and still be approved for a new home loan. You should keep in mind that mortgage lenders are mainly concerned with verifying you will be able to repay a new home loan. Therefore, your payment history on a current mortgage will be considered seriously.

There is no reason to worry about the fact that you can’t get a home loan approval with a low credit score. Low credit score mortgage lenders are there to help you. So, start shopping for lenders and then apply for the loan to the right lender.