If you have a 500 credit score, getting a loan may sound impossible to you. The truth is that while getting a mortgage loan with a 500 credit score can be difficult, it is not out of the realms of possibility. These days, you can find lenders that still approve mortgage loans even if the borrower has a 500 credit score – or below.
More importantly, you can find numerous mortgage brokers that are ready to work with different lenders all over the country, particularly lenders that specialize in lending to borrowers with less than perfect credit scores.
What does a mortgage broker do in the first place?
1. A mortgage broker is one who can help you with your problems. He or she can discuss with you the things you could do in order to increase your credit score and then find you a lender out there who is willing to finance you even though you are still at the stage of improving your current credit score.
2. A mortgage broker can introduce you to a program that will average all of your credit scores, fully maximize your high credit score, and check out only your mortgage history and not each of your credit scores.
3. A mortgage broker acts as a personal mortgage consultant who can help you discover your options if you want to apply for a 500 credit score mortgage loan.
One of the things you'll soon realize once you start looking around for lenders who can give you the loan you desire is that if your property carries enough equity, lenders would be more willing to lend against it. Otherwise, you may encounter some difficulties in convincing them to give a loan to you.
So, what do you do when your property doesn't really have enough equity to begin with?
This is where credit repair comes into the picture. In order to successfully receive a 500 credit score mortgage loan, you must show your potential lenders that you want to improve your poor credit score and that you are serious about it.
Saying something and demonstrating it are two different things. You can start by signing up for a professional credit repair program. There are a number of these programs out there, and you can find a good one by reading reviews or asking around.
One of the most common techniques in fixing one's credit involves the employment of a credit card consolidation program. Credit cards are considered as the major enemies of people who have poor credit scores – people who are in debt and who may even be in danger of bankruptcy.
With a credit card consolidation program, you can pay for your credit card debts more effectively. You won't have to make numerous repayments every month.
In order to get the best deals (credit card consolidation programs are known to carry high interest rates), shop around and compare the terms offered by each program that exist before settling for one. If you have a 500 credit score or below, don't despair.
With patience and determination, you can find a lender who can give you the 500 credit score mortgage loan you need to make ends meet.