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A.Mortgage lenders approve loans based on the borrower’s income, assets, liabilities, employment history, and credit history. It used to be that a poor credit history or a high debt-income ratio made it almost impossible to buy a home. The 1996 Home Mortgage Disclosure Act cited credit history as the number one reason for denying a mortgage application. More options are available today than ever before for people with less-than-perfect credit.

Subprime mortgage loans have less stringent qualifying criteria and generally carry a higher interest rate to offset the increased default and foreclosure risk.

Credit counseling services offer free counseling and assistance in overcoming credit problems so that you then can qualify for a conventional loan with a more competitive interest rate.

As your REALTORS®, our experience and knowledge will help you overcome obstacles to home ownership. For more great tips, give us a call at (910) 364-5736 or (910) 977-7215!