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Bad Credit Mortgage Shoppers Go Online For More Options

By Gabriel Traverso
Mortgage Credit Problems Columnist


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Borrowers with bad credit shopping for a home loan might find fewer choices than have been available the past few years. The answer? Turn to the Web for more efficient mortgage shopping.

The Bad Credit Mortgage Boom Might Be Over

For the past few years companies like New Century have done very well making loans to borrowers with poor or bad credit. However, this year many of these lenders found themselves in difficulty--some subprime mortgage companies are even facing bankruptcy. What does this mean for you? Shopping for a bad credit mortgage will now require more legwork on your part. As a result, smart mortgage shoppers will use the Internet to maximize their efforts.

You Can Still Get a Home Loan

Just because the rush of the bad credit mortgage business appears to be over doesn't mean you won't be able to get a loan, it just means you'll be facing fewer choices. Going online will make shopping around for lenders who can work with you a much easier task. Submit basic information using a loan inquiry form from a good referral site--reputable firms should not be getting your Social Security number or other personal information at this early stage. Your information is then matched up with lenders who can work with borrowers meeting your criteria and they contact you. This approach to mortgage shopping can save you a great deal of time and effort!

Bad Credit Mortgages: The Importance of Shopping

When you have bad credit it is even more critical that you take the time to shop around for a home loan. Because of your bad credit rating you are far more likely to pay a higher interest rate than those with good credit and you'll probably pay higher closing costs as well. By shopping around with different lenders and comparing their mortgage offers, you increase your chances of getting the best possible deal. Go online and you'll probably find several lenders willing to work with you.

Source
The Wall Street Journal: After Financing the Housing Boom, Wall Street Shuts Off the Spigot

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