Also, make sure to include all the income you have. If you have any equity in any stocks or other financial accounts, make sure to mention that to the broker as well.

The more money you can put down on the loan, the more likely it is that you can get approved. FHA loans usually only require 3-5% down. They are also usually open to working with people with credit problems.

Subprime mortgage loans are a good thing if you can get a reasonable interest rate and terms. Then, once your pre-payment penalty period is over you can refinance with a lower interest rate. However, since there are fewer mortgage options for those with bad credit it is easy to unknowingly purchase a loan that is more expensive than what they should qualify for.

Here are five things to look our for when choosing a subprime lender:

1. Make sure the lender provides you all the closing costs and fees in writing at least twenty-four hours before they close. Many subprime lenders will charge high fees at closing because they figure people will pay them because of their reduced options.

2. If the subprime lender is trying to get you to borrow more than you can realistically afford with your finances then they are definitely not a good lender to go with. These type of lenders and loans will usually just lead to foreclosure.

3. Check into pre-payment penalties. Nearly all subprime lenders have pre-payment penalties involved. Make sure you know the amount and period that these penalties involve. After you sign the papers, it is too late to change these penalties or get out of the loan. A long pre-payment penalty will make it longer before you can refinance your loan.

4. Make sure the lender provides you your interest rate in writing before signing the papers. This is one of the most prominent areas where people are affected. Always get the interest rate in writing and make sure you choose the one that is competitive and comparable.

5. Do not sign with a lender asking for a fee upfront. When you are applying for a mortgage loan the only fee you should have to pay is for the lender getting your credit application. Some subprime lenders will ask for processing fees that are very high in order to process the loan. Lenders asking for these upfront processing fees should be avoided.

Our Recommended Bad Credit Mortgage Lenders Online: See below for the Most Reputable Lenders:
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  When applying for a bad credit mortgage loan, make sure you are current on your existing credit lines. You will want your current credit to be as good as possible.

Also, make sure to include all the income you have. If you have any equity in any stocks or other financial accounts, make sure to mention that to the broker as well.

The more money you can put down on the loan, the more likely it is that you can get approved. FHA loans usually only require 3-5% down. They are also usually open to working with people with credit problems.