Its an easy task to get a mortgage if you have excellent credit.. Everyone will be willing to loan you money because of your credit, and also because they have the property in case you default. The lenders don't have much to lose in this case and they really feel comfortable and secure when a person ahs a good credit rating. It's the opposite if a person has bad credit and wants to obtain as mortgage. Lenders are hesitant to loan money to people who have a bad credit rating even if they have a good job and the means to pay the mortgage. The lenders take the credit rating in consideration at a high level. This is a tool they use to predict if a borrower is likely to make their payments on a timely manner.
Its not impossible for a person to get a mortgage with bad credit, but it may be a difficult and costly one. There are also risk involved. Many bad credit mortgage lenders will take advantage of customers because of their bad credit. They know that top lenders will never give them loans so they may make it a very expensive investment for the borrower. In some cases bad credit people have be cheated and scammed by shady mortgage brokers. They often are given a mortgage with nearly impossible feels and a high interest rate that they cant possibly make their payments. This results in foreclosure and the lender gets the property, as well as any payments the borrower has made. The property is then resold by the lender and the assets are collected.
Not all bad credit mortgage companies are un ethical. There are many bad credit mortgage companies that are very legitimate . The borrower does have to realize that they will pay higher fees, and a higher interest rate but it wont be so much more that they cant afford the payment. The bad credit customer has to still qualify for a loan. This means have the means to pay for the mortgage, a steady job, or maybe other collateral to ensure the property is secured. The important thing is shop around and select a mortgage broker who has a positive history, and avoid brokers that are unknown or seem a bit to eager to approve your loan.