The conventional wisdom has been to shop around for the best mortgage rates. Most people understand that rates can vary between lenders. When it comes to a loan that you may pay on for 30 years, you certainly want the lowest rate. In addition, if you have bad credit, it may seem imperative to shop around for as many mortgage companies as possible. Not only are you trying to find someone who will work with your bad credit, but you are trying to get the best rate in a bad situation.
The reality is that shopping around is a good thing when you have bad credit. The problem, however, is that too much shopping can actually make your credit worse. Every time that you submit a loan application, the company runs a credit check on you. Each of these inquiries shows up on your credit report. When you have a lot of inquiries on your credit report in the same time period, it actually lowers your credit score. The reason for this is that lenders worry that a person with lots of inquiries is trying to get a lot of credit in a short amount of time for many different lenders. While this may not always be the case, that is the way it can look on a credit report.
The best advice for someone trying to get a bad credit mortgage is to find a company that you know can work with bad credit in the first. Downs Financial is one of these companies. About 80 percent of the customers we work with actually have bad credit. In addition, our rates are some of the most competitive in the industry because we are actually loaning our own money.
To find out more, contact us today. We have professional loan officers who are ready to take your call. We can work with you anywhere in the United States. Before submitting one more application, call Downs Financial first.