Bad Credit ? DO S And Dont When Talking To A Lender
I work for a retail Direct Lender. One of the big 3's. These are my DOS and DONTs when looking for a mortgage,
DO;s
Please be cordial. no rudeness . Your there buying money and have bad credit.
My main priority is finding out where we can benefit you . Having a good client is just part of the process. Obiviously this is a business transaction. Im there to make money for the company. and at the same time give you a good deal and service
DONT The worst question that I get on a daily basis is "What is your rate"? This shows that our not really interested or just shopping around. Im on the other end working on somelses deal. and most of the time. I just quote a 30yr A paper deal 0 discount. Great you fit the box you get that deal. wait a minute you have 30s lates, Collections and your score is a 560 . You DONT FIT THE BOX< SORRY DUDE.
DOS
Prepare know what s on you credit report. Never lie about collections,judgements ,child support. This can and often kills deals.
If you can please go FULL DOCUMentation . You will always have th best rates available. and Pricing. Keep in mind going stated and being subprime is going to cost you. No matter where you go. High Risk HIGH defaults . I get customers 580;s Stated doc and over 85LTV. and they expect 5.5 % Sorry dude but no broker or Direct Lender would offer that to you.
Do's.
Making sure you have all paperwork. Also if you are in negotations with a collection agency . get a written settlement letters. Also cancel any type of credit counseling. This will send message to underwriters that you more debt somewhere else. its not good thing.
Don t's
assume that you deserve A paper rates. becasue you dont deserve them.
bottom line Your credit scores are based on what you did in your life. I dont make up the scores. I just crunch the numbers and fit you in a BOX either A or B.
good advice!!!!
Part2
Do's Be upfront dont hide anything because we will find out. BK,Collections ,NODS.
If your shopping let the rep know this way you can maybe haggle for a better deal. If your below 530 dont bother because its a waste of time.
Always ask a lot questions dont assume that your rep knows what you want. Inexperiecened Loan reps often dont see a deal or put you into a bad program.
If your just out of BK. Go with an adjustable mortgage. Reason being a fixed mortgage will be too expensive . You will probaly refinance in 2 or 3years. There s also a reason why your restricted on loan to value cash out. You BKD out and more than likely you will be in the same situation high debt low income. If you per chance find a deal with over 85LTV and recent bk or foreclosure . Run like hell.
If anyone wants to add to my advice feel free . Thanks