Finding a decent mortgage company to work with when you know your credit stinks looks like a losing battle.
At least that's what the mortgage brokers want you to think.
Most brokers want you to think you have very limited loan options just because your credit may be damaged.
The fact is, finding a Mortgage Company For Bad Credit Borrowers, is very possible.
You certainly have a great chance at getting a better interest rate if you would only do some serious mortgage shopping rather than committing to the first mortgage broker you deal with.
One recent study showed an interest rate range of 4.25% between what lenders were offering to borrowers with "D" credit (below 620). The lowest being 10% and the highest at 14.25%
Compare the gap of .625% for those with "A" credit. The low being 6% and the highest at 6.625%.
What this indications is that borrowers with poor credit tend to be charged more because they simply do not shop – and the brokers know and capitalize on that.
Many brokers may try to convince you that your loan is a "lot of work" and "they might be able to get it through underwriting".
Do not believe it
Your credit may not be as bad as you think and lenders are probably willing to compete for your business.
Once the sales pitch is delivered and you actually believe it, the mortgage consultant can begin the process of creating the loan terms with more than likely "his" best interest in mind.
Learn to save thousands by understanding the 3 key factors that will help you save a ton of cash if you are a bad credit mortgage borrower.