Subprime Mortgage Lenders Online - Would You Qualify?


by C.L. Haehl - Date: 2007-03-14 - Word Count: 332 Share This!

Subprime mortgages are usually for borrowers with credit scores below 620 - The credit score ranges are from 300 to 900 and most consumers are in the 600 to 700 range. Those individuals below 620 will usually find that their credit is not great and they may have some bad marks on their credit that would prevent them from being able to become qualified for a regular fixed rate or adjustable rate mortgage.

Brokers Avoid the Term "Subprime" - There are very few lenders who will actually refer to these mortgages as "subprime" rather they will not even use a term to describe the loan at all. This is done in an effort to not make the individual feel below average or a bad person because they have credit troubles. It's important to realize that these mortgages are designed for individuals with lower credit scores, and they are usually the type of loan you are receive if your credit rating is low.

Applying Online Is More Convenient - With the convenience of the Internet it has become increasingly more convenient for people to get pre-approved online for their subprime mortgage. Many online lenders will offer better rates and they also tend to have lower fees. Your credit history is important, but your cash assets, income and down payment are also important in the loan approval process. You will need to supply your personal information such as your name, address and social security number. You will also need to include the property's address and selling price if you have already found a home that you are interested in purchasing.

To finalize the mortgage, the subprime lender will verify the value of the property as well as your credit. The mortgage may take about four weeks to process, but this pre-approval may only take minutes to a few days. When you close on the property the lender's escrow company will aid in the transfer of money as well the primary closing costs and any points you may have to pay.


Related Tags: mortgages, lenders, subprime, high risk

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