Finding a Bad Credit Mortgage Broker

By Tom Kerr

Bad credit has become so commonplace in this country, that many lenders compete for the business of people with low credit scores in order to capture this expanding sector of the financial marketplace. Lenders in this niche now offer so-called "bad credit loans" through a variety of flexible and creative loan programs, packages, rates, and payment options.

Since the choices can be overwhelming, bad credit mortgage brokers-professionals who represent numerous bad credit mortgage lenders-can help you put everything into perspective. Instead of running all over town shopping for a home equity loan or mortgage refinance, seek out a broker who focuses only on clients with credit problems. You may not find one in the same place where other traditional lenders congregate, but they're out there waiting to serve you.

Bad credit mortgage broker tips

You can locate bad credit mortgage brokers by asking friends or professional credit counselors for recommendations, by contacting bad credit brokers who advertise in local newspapers and yellow page listings, or by browsing the Internet. Once you've compiled a list of these specialists, check their credentials with the Better Business Bureau, and interview them to determine which one is the most qualified and resourceful. Such a person can help you get the type of loan you need at the best price.

The larger number of loans that you have to choose from the better off you'll be, so inquire about various lenders in your broker's business network. Even mainstream banks are getting into the bad credit mortgage game. If a broker is proactive and does a healthy amount of business, he'll have fresh data on a variety of lenders.

A good broker is entitled to reasonable compensation. However, he shouldn't pressure you to borrow more than you need, or accept rates that aren't the lowest available. Ask him to explain his fee structure-if he refuses, find someone else.

You may happen to have a low credit score, but that doesn't mean you're entitled to poor service. With a little bit of legwork, you can find a good bad credit mortgage broker to help you along the path.