Having a blemish on your credit report can lead people to believe that it will be impossible for them to obtain a mortgage or refinance their current one.

Although having less than perfect credit can be a challenge, all hope is not lost.

There are lenders out there, and many of them, who specialize in doing mortgages for people with challenged credit. These lenders are known as sub prime lenders.

You may not be familiar with sub prime lenders because they are not the type of institution to set up shop on every street corner like the banks.

Sub prime lenders deal with all kinds of special and unique situations. Whatever your situation may be, there is a good chance that there is a lender out there with a program for you.

For instance, sub prime lenders have programs for people with poor payment history, people who have had bankruptcies, people who are in foreclosure and are looking to be bought out, etc. Over all if your credit history is poor, you will most likely have to go with a sub prime lender.

My suggestion to you would be to find a broker to shop around for the best possible program for you.

A broker is not a lender, their job is to guide and educate you through the loan process. Most brokers have a contact list too literally hundreds of lenders across the country including sub prime lenders. Allow for the broker to assess your financial situation, than fit you into a program that you both can agree on.

The down side to dealing with a sub prime lender is the interest rate. You can count on it being high. If you have bad credit, the lender will see you as a risk, and the penalty you pay for being considered a risk is in the interest rate.

The point is this, regardless of your credit issues, there most likely is a lender out there who will deal with you, just make sure the deal you agree on is in your best interest and not in the best interest of the broker or the lender.

When deciding to purchase a home or refinance your existing one, always do your homework. Continue to educate yourself so you know what to expect going forward, and don’t be afraid to shop around for the best deal out there. Just because your credit isn’t the greatest doesn’t mean lenders won’t be competing for your business because they will.

Your credit can be repaired over time if you pay your bills on time, so make this a goal and work toward it.

Jennifer Hershey has more than twenty years of experience in the Mortgage Industry as a loan officer. She is the owner of http://www.explainingmortgages.com/, a mortgage resource site devoted to making mortgage terms and products easy to understand.

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Searching for just the right home can be very exciting. You may plan ahead for the number of bedrooms and bathrooms that you want. Or imagine preparing for dinner parties in a sun-filled kitchen. Although these things are important, there is more to a good home purchase than the rooms it contains. Following are just a few suggestions to consider. Take some time to make a list and determine which additional priorities are important to you.

Survey the neighborhood during many different times of the day and days of the week. Are you comfortable with the noise, activity levels, traffic volume, etc.?

If you have, or plan to have children, check with the local school board about the neighborhood schools. What is the student/teacher ratio? How are the test scores? How involved are the parents? What programs are available for students? What credentials and how much experience do teachers bring to the task?

Is the foundation of your new home sound? Is it well built?

Are the existing appliances sound or will they need to be replaced?

Are the home’s major systems such as electricity, plumbing, heating/air, and roofing in good condition?

Is the home energy efficient?

How much major and/or cosmetic work will be required?

What will your commute look like? If possible, do a trial run during rush hour.

What is the crime rate?

What permits have been issued for new projects and/or construction in your new neighborhood?

Will you be expected to pay homeowner association fees? Are you comfortable with the covenants set forth?

Does the neighborhood provide sufficient recreational opportunities?

Will you be moving into a home or joining a community?

Is the local grocer clean and well-stocked?

Enlist the help of a good real estate agent, reputable home inspectors and others to help find a home with more than just a pretty face.

Beyond Mortgage Payments

Owning a home involves far more than keeping current with your mortgage payments. There are a number of costs associated with home ownership that extend far beyond the basics (i.e. principal, interest, taxes and insurance). Assuming responsibility for these costs can be a big financial adjustment. This is particularly true if, as a renter, you are accustomed to responding only to fixed expenses (i.e. rent) without much concern for variable expenses (i.e. broken pipes and new water heaters). Well, now you are the landlord and it is up to you to handle the mortgage, in addition to all of the variable expenses of home ownership.

Routine and emergency maintenance issues are an inevitable part of homeownership. The dishwasher will need to be replaced, the roof may begin to leak, or the furnace will give out. You can minimize the financial fallout by planning ahead and budgeting in anticipation of these expenses. Recommendations vary, but you would do well to save an amount equal to at least 2% of the cost of your home for annual upkeep and maintenance. Set aside funds toward this amount each month. In this way you will eliminate the scramble and panic of getting the funds together to get that tree off of your roof.

In addition to maintenance and upkeep, there may be other costs you will need to absorb. These include water, sewer and sanitation expense; homeowner’s insurance, and property taxes. It is important to understand the full cost of home ownership before you sign on the dotted line. You can build confidence in your ability to handle these new expenses by making a trial run. Do your best to estimate the total cost of home ownership. Use that information to make a budget. Before you sign on the dotted line, live within that new budget and see how well you manage. You may find that you have adequate financial resources, that’s great. If you find that you are a bit short, you may need to make some adjustments. Being proactive now may help you avoid foreclosure in the future.

Nicole Soltau is the President and Founder of CreditUnionRate.com
The Leading Credit Union Directory
Search, Find, Join.

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There is no bad real estate market, only people with problems who happen to own real estate!

To build your own real estate investment company, to become a real estate entrepreneur, you need a system that combines the tools and knowledge to provide solutions to these people’s problems. These are human problems, not real estate problems. People die, they lose their jobs, they get into financial troubles, they get divorced, etc.

These “Trigger” events, combined with the lack of cash savings and little equity most homeowners have in their homes today can lead to extreme financial, emotional and even physical distress; as homeowners struggle to keep up their payments and/or are frustrated by their inability to sell their properties.

Think about it. If the payments on your house were killing you because you were stuck making two mortgage payments; the sale of your old house fell through after you closed on the new one.

Wouldn’t you be lying awake at night, worried sick about running out of money and having to face the embarrassment of foreclosure?

What if you did not have much equity and the costs of a sale, which could be 20% or more of the value of the property, would eat up a good chunk of your remaining savings? Wouldn’t you be praying for someone to come along and solve your problem?

You might even get so desperate that you would actually Give the property away to anyone who would take it, just to be rid of all the stress!

We have just taken a good look at one side of the profit equation, the seller’s side. There is also a buyer’s side.

There exists a Shadow or Phantom market of buyers for real estate. Most are self employed people or small business owners. Others have had recent bankruptcies or foreclosures.

Still others are foreign nationals. They can afford to buy real estate but for various reasons cannot or do not want to qualify for a bank mortgage.

You can solve their problem by selling them the homes you pick up from the desperate homeowners! You sell them with seller financing. The Phantoms will reward your “kindness” by paying you premium prices for your properties!

You can get started as a part time investor with a basic real estate investing system:

Tags: bank, entrepreneur, foreclosure, home, investments, money, mortgage, own business, Real Estatebank, entrepreneur, foreclosure, home, investments, money, mortgage, own business, Real Estate

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