There are millions of people in the United States who would love to own a home, but have insufficient credit at their disposal to qualify for a typical mortgage. It is difficult for these people to find acceptable loans, or lenders who are willing to risk their sub prime status.
A sub prime – or non-prime – consumer is an individual whose credit score fails to qualify them for most loans, mortgages and lines of credit. Today, the sub prime category is a credit score between 540 and 700, which is higher than it ever has been before.
An accredited home lender is a loan company or officer who offers home loans to consumers in sub prime status. Typically, interest rates are slightly higher for sub prime consumers, but they are still able to obtain a home loan from an accredited home lender. Today, more and more companies are deciding to offer accredited home loans because it is proving to be a lucrative business.
Accredited Home Lenders, one of the foremost sub prime lenders, has offices all over the United States, and has been distributing millions of sub prime home loans since the year 1990. They remain one of the top accredited home lenders, and have built an entire brand around the concept.
Most accredited home lenders, however, offer both prime and sub prime home loans. Consumers are rated based on their credit scores and are offered an interest rate on mortgage payments depending upon their prime or sub prime status. This ensures that the company itself does not take an exorbitant risk, but that prospective home owners are given an opportunity to reshape their financial future.
Finding Accredited Home Lenders
You can usually find several hundred options for accredited home lenders by running a Google search. You can also look through the yellow pages in your phone book to find a local financial institution where you can meet with a broker and discuss your options.
Be wary of applying for a home loan through the Internet because there is no guarantee that a company is legitimate. Make sure to do your research before accepting any money from anyone, and you should have a clear understanding of the terms of the loan. Factors like balloon payments, interest-only payments, ARM mortgages and sub-prime lending are not always understood, and should be explained in detail. Some unscrupulous lenders will attempt to trick consumers into signing a loan application full of unintelligible jargon that will wind up leaving the consumer in trouble. Having an attorney take a look at the application might not be such a bad idea.
Making Your Decision
It is likely that you will be bombarded by a slew of information that you might not understand right away. There are scores of decisions to be made concerning a home loan, and an accredited home loan is no different. Talk at length with your broker to understand your options before making a decision that might affect the next thirty years of your life.
If you aren’t sure whether or not an accredited home loan is for you, compare all of your options side-by-side. Have your broker explain the positives and negatives of each possible selection, and then talk about it at home. Interest rates, balloon payments, fixed or adjustable rates and early payoff fees should be taken into consideration before signing a loan agreement