Fast Bad Credit Mortgage Loans » how to get a bad credit loan http://fastbadcreditmortgageloans.com Buy Your Dream House Today Wed, 23 Sep 2009 20:55:52 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 Important Things You Need To Know http://fastbadcreditmortgageloans.com/loan-questions/important-things-you-need-to-know/ http://fastbadcreditmortgageloans.com/loan-questions/important-things-you-need-to-know/#comments Wed, 05 Aug 2009 20:43:23 +0000 admin http://fastbadcreditmortgageloans.com/?p=13 When applying for a loan, make sure to apply with several different lenders to compare rates. You can apply at banks or credit union or hire a mortgage broker. Mortgage brokers work to find funding for you and they will usually apply with several different lenders. They are not obligated to get you the best loan possible unless you hire them contractually so you need to be clear about your brokerage arrangement. In addition, just like with banks and lenders, you should compare brokers. Brokers typically get paid by “points” that are paid at closing escrow or added on to your interest rate.  Some lending institutions may also act as brokers so you need to find this out because they would be entitled to both loan origination fees and the brokerage fees which would increase your costs.

Loans are a negotiable contract so it is up to you to shop around and try to obtain the best loan available. Obviously, if you have better credit you will be able to obtain a higher quality loan, but just because you have less than perfect credit, doesn’t mean you won’t be able to find a lender.

Things to Ask:

  1. What is the interest rate on the loan?
  2. What is the length of the loan?
  3. Is the loan fixed rate or adjustable rate? (If the rate is adjustable be sure you have a full understanding of the process.)
  4. Are there any prepayment penalties?
  5. What are the total closing costs?
  6. How much is the loan origination fee?
  7. Are there any underwriting fees?
  8. What are the brokerage fees?
  9. Are the points for the loan? (Points are fees you pay to the lender to get a more favorable loan)
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