Just recently, the subprime market took the heat when forecasts came out that the subprime auto lending industry would drive us into the next global financial crash. Equifax extinguished the fire after with their research showing that this market has remained very stable.
While the ghosts of the last decade’s subprime crisis aren’t gone completely, the subprime industry’s lenders and investors today have become smarter. Equifax data supports that although there has been an increase in delinquencies, this can be seen as a normal result caused by the steady rise of financing. The ratio has remained healthy.
Subprime loans are meant for borrowers who have less than stellar credit. These are for people who wouldn’t otherwise qualify for a conventional loan.
These four steps will make it easier for you to qualify for a subprime loan. Know them by heart and you’re sure to get that loan.
Make a list of the standard requirements for a subprime loan.
What are they?
- Proofs of Income: Prepare the most recent two months of your pay stubs. If you have anything that can show proof of that is can be counted as part of your monthly income, keep it handy.
- Bank Statements: If you lack income verification documents (a common problem for the self-employed), what better proof is there than your bank statements. This will show the lender your cash flow.
- Recurring Expenditures: Your lender must see where your money goes and how much is left at the end of the month. Provide your latest utility bills, monthly mortgage payments, and other monthly expenses. You may also include your latest credit account statements.
A lender may require you more than those listed above so make sure to have supporting financial paperwork ready.,
Visit mortgage loan websites.
A loan website, such as the Subprime.biz, does not only provide you information about a specific loan, it also has features to help you find the best subprime loan providers. This makes it easier for you to look for the best loans. With just a few clicks, the site will be able to match you up with the best lender that suits your needs.
Contact different subprime lenders.
Speak to different lenders and make sure you ask them everything you’ve got to know about the loan. Ask about their loan rates, down payments and other fees. Make a list of these lenders and note down all the information you gather from each. This way you can compare them and find the best one for you. Also, do not forget to ask about the other documents the lender requires in addition to the ones you have.
Consider seeking help from a mortgage broker.
Sure, it will cost you a little more to have a mortgage broker; but having one will save you not just time, but money. A mortgage broker can analyze a database of all the lenders available and find one that best meets your loan needs. Instead of you going through each lender in your local, he/she can shortlist them and define your choices to the ones you can benefit the most.
There is no exact science to finding the best loan on your first attempt. You may need to try a few times before a lender will consider your application. Consider doing steps listed above to save you valuable time. Shop wisely so you can find the best loan deal.
Click Here to get matched with a Lender»