Does a poor credit history preclude obtaining a mortgage loan?
Thank you for using our 24-hour information line. You have requested information on Does a poor credit history preclude obtaining a mortgage loan? A poor credit history, while unfortunate, does not eliminate obtaining a mortgage loan. What it does impact is the rate that you are going to pay, and the amount of equity that you will have to have in the property. A few credit blemishes will raise your interest rate about 2.5 points over the current rate (if rates are currently 8.25%, then you could expect to have your interest rate in the 10.75% range). If, however, your credit is severely blemished, then you could expect another 2-4 points added to your interest rate, giving you an expected rate of 12.5 to 14.5%. However, you can be better prepared if you get a copy of your credit report to review before you apply for your mortgage. That way if there are any errors you can take steps to correct them before you make your application. If you have had credit problems, be prepared to discuss
