Sub prime mortgage lenders process applications online everyday. Processing information over the internet speeds up the process and saves costs on offices and personal. In some cases, you can get a reduction in fees or rates by completing your application online. To get approved on your mortgage, follow these tips.
Sub Prime Mortgage Factors
Sub prime mortgage lenders each have their own criteria for assigning loan scores to lenders. The higher the score you get, the better the rate you qualify for. Credit history is important, but so are cash assets, your income, and down payments.
On average sub prime lenders like to have a down payment of 20% or more. However, they offer a variety of loan terms. You can even get a zero down mortgage, but expect to pay a couple of points higher.
Picking a fixed or adjustable rate will also determine how much you qualify to borrow. In general ARMs have lower monthly payments, so you can borrow more. Sub prime lenders also handle interest only loans and balloon payments.
Online Loan Application Forms
Online loan application forms are straight forward. Over a secure connection you provide your personal information, usually name, address, and social security number. If you have a property in mind to purchase, you will also need to include the propertys address and selling price.
If you requested a loan quote, you may not even have to fill out any additional personal information. Much of your financial information can be found in databases. The financing company will complete your application and ask for your approval before closing.
Finishing Final Paperwork
Mortgages usually take about four weeks to process. The sub prime lender has to verify the propertys value and your credit. An escrow company will also help you handle the exchange of money, primarily the closing costs and points.
As with a regular loan, your paperwork will require your approval and signature. Instead of going to a home office though, you will need a notary. Most companies schedule a notary to come to you at your convenience. After paperwork is received, funds should be processed in three days.
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Carrie Reeder is the owner of ABC Loan Guide, an informational website about
various types of loans.