How Can I Determine Whether A Subprime Mortgage Loan Will Be My Only Option?
Many potential homeowners know that having to obtain a subprime mortgage loan will make paying for their home more difficult but a lot of these homeowners that must obtain a subprime mortgage loan are unaware that they will only qualify for a subprime mortgage because they have no idea that their credit history is as bad as it is. A credit history is not one of the things that is seen on a frequent basis, so it is difficult for many to determine whether or not they fall into the good or poor credit categories. There are several different ways that a homeowner can use to determine their credit worthiness.
Estimating Your Credit Score
The first way to determine whether you will need to obtain a subprime mortgage loan is estimating the credit score. Using this method, the individual reviews their debt levels and their financial actions to determine whether these have led to a credit score increase or decrease. An individual that paid off their credit cards, put money in savings, and have not been late on any bills can expect to have a credit score increase while individuals that have missed some payments and have used more than 50% of their available credit can expect a decrease, resulting in the need to settle for a subprime mortgage.
Although this method of determination is imprecise, it will provide a reasonable estimate of what the credit score will be. As long as the information is remembered accurately, the person may be able to correctly judge their credit score and whether they must obtain a subprime mortgage loan. There are even some credit history calculators available on the internet that will take this information and calculate your credit score online.
Reviewing Your Credit History
Another method of determining whether you must obtain a subprime mortgage loan is to obtain your actual credit history and score from one of the three major credit reporting companies; Equifax, Experian, or Transunion. This can be difficult because the homeowner will need to verify their identity to the company before their credit information can be released. In some cases, it can take up to two weeks to obtain the information because of the number of requests that these companies handle every day from businesses and individuals. If there is a problem with the information that is submitted, it can take even longer to find out if they must obtain a subprime mortgage loan.
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