People can sometimes get caught up with financial issues by tending to apply for unnecessary loans, max-out credit cards or borrow emergency money from lending firms. Due to unexpected expenses, individuals will sometimes have to delay payments or worse, they will default on their debts. Doing so will now cause these people to obtain a very poor credit score.
When the time comes that you need to apply for another loan or you want to apply for a housing loan, you will be in trouble. When applying for a housing loan or a mortgage, lenders and banks are very scrupulous in checking you credit history. These financing agencies will have to dig through all your finances including credit card bills, bank reports, present loans, etc. Before you can get your loan application approved, they will evaluate your financial situation and rate your resulting credit performance.
And yes, because of these unpaid loans and delays in payments, you will likely to tagged as having a wrecked credit history. You will then have to consider applying for Arizona home Loans with bad credit
Filing an application for a mortgage involves having to improve or clear up your bad credit history. These types of loans are best suited for people with the following issues:
- A very unfavorable credit history
- People who still have existing home loans
- People who are drowning in too much debt
- Borrowers who have huge bills from credit card companies
- People who are caught up in personal loan defaults and amount over dues
- Individuals whose loan applications have been previously declined by other banks and lenders
Applying for Arizona home Loans with bad credit
gives people with poor credit history to take advantage of subprime mortgage loans, that enable them to finally get an application approved. However there is a slight catch. Since the lender is the one burdened with higher risk, it will cost the borrower a higher interest rate.
But don’t let that stop you. When a subprime mortgage is used responsibly, a lower interest rate may be allowed. The State offers responsible borrowers what they refer to as an Adjustable Rate Mortgage or ARM. This allows the borrowers to enjoy a lower interest rate in a prescribed span of time, specifically 1 to 7 years. After the lock-in period agreed upon, the interest will eventually increase to a higher rate.
Further by using an ARM, the interest rate can be leveraged. The homeowner can have the loan refinanced that will result in a lower mortgage rate, or simply apply for another Adjustable Rate Mortgage.
If the borrower has another mortgage default, it would really difficult for another loan application to be approved. Make sure you are following the right steps to apply of a mortgage by contacting us at Level 4 Funding. Don’t hesitate to give one of our knowledge loan professionals a call. Contact us at 623-582-4444 and speak to one of our friendly associates.
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027