The bad credit home mortgage loan has become more and more popular in the last few years as the economy as been in the doldrums and many people have lost their jobs. Many lenders now tailor some of their mortgage loans specifically for people who have a less than perfect credit record. However, there are many unscrupulous lenders out there who will be only too happy to lend you large sums of money at exorbitant rates of interest and crippling late-payment fees, and who will then make your life a complete misery if you don’t keep up with the payments. These sharks are definitely best avoided.  The same goes with car & motorcycle dealers – getting auto loans with bad credit or bad credit motorcycle loans probably isn’t the greatest idea either.

So how do you avoid these cowboys and find a reputable lender who will offer you a bad credit mortgage loan on fair terms? Well, first of all, you have to do your homework and spend some time looking at a whole bunch of lenders and the deals they offer, comparing rates, fees, etc. And you have to be patient. If you have bad credit, not everyone is going to want to lend you money, so you might need to go through the application process a few times with various different lenders – before you find one who will agree to offer you a loan for people with bad credit. Try to take this in your stride as it is a situation that cannot be avoided. It is what it is. The good thing is that there are plenty of reputable lenders out there offering fair deals, so as the saying goes, if at first you don’t succeed, try again. It might take a while, but don’t give up.  These of course are a far cry from no doc mortgage loans.

The key thing is to try to present yourself to the lender as someone who is not going to be too great a risk – because high risk personal loans will be more difficult to get. Banks are of course in the risk-taking business, every investment has an element of risk involved with it. But they will want to know that you are a risk worth taking. If you can show that you have a good handle on your income and outgoings, that you know exactly where your money goes each month, that you don’t spend on fripperies and unnecessary items instead of essentials, then that will help tremendously. Why not prepare a spreadsheet that shows your monthly cashflow clearly? Banks and lenders love that stuff, and it may very well help you get better interests rates – even if you are getting a bad credit mortgage loan.

Whatever you do, make sure you avoid the unscrupulous lenders who are out there preying on people in difficult financial situations. Always deal with regulated financial institutions.

Though you have to get a bad credit mortgage loan for now, if you work hard an persevere on repairing your credit and getting your FICO score back in good standing – someday you’ll have the ability to get any kind of no doc mortgage or other easy to get loan.