Bad Credit Mortgage FAQs (Frequently Asked Questions)

Q. How much does it cost to Apply Online?
A. Free! There is No cost or Obligation to Apply online.

Q. How long will it take to get my loan approved?
A. Your loan will immediately begin the underwriting process once your information is submitted. Bad Credit Loans & Mortgages will deliver your credit decision in most cases within 24 hours.

Q. What are the differences between a Home Equity loan and a Second Mortgage?
A. Nothing... they are just two different names for a loan that is taken out against the value of home to get cash to pay off existing debt or for Home Improvements. A Home Equity Loan is a type of Second Mortgage.

Q. What about a home equity line of credit? What is it?
A. When you are approved for a home equity line, you gain the ability to draw money, whenever you want, for a period of time. You only pay interest on the amount you borrow over that time instead of one bulk amount. Most borrow money, then pay off the money they borrow and borrow again against the line of credit. The credit line us usually accessed with a check or credit card.

Q. What is the difference between a home equity loan and a home equity line of credit?
A. Both are considered second mortgages, with a home equity loan all funds will be paid at closing. A home equity line of credit provides you with a credit line that you can borrow against at any time within a set time limit and up to a maximum amount.

Q. What is my mortgage rate and when is it confirmed?
A. Interest rates fluctuate daily, so the rates available when you apply may be different than the rates available when you decide to lock your interest rate. By locking, you protect your selected rate for a stated period regardless of market fluctuation. Your Fico credit score, Debt to Income Ratio, and Combined Loan to Value ratio will determine the mortgage rate.

Q. What is my maximum loan?
A. Your maximum loan is determined by several factors. Your Fico credit score, Debt to Income Ratio, and Combined Loan to Value ratio will determine the mortgage rate and the limits for loans size.

Q. What is an APR?
A. Annual Percentage Rate. APR is often referred to as the Effective Rate, is a rate which shows the true cost of borrowing. This rate is different from the nominal interest rate stated in your loan documents. The Truth In Lending Simplification and Reform Act requires mortgage companies to disclose the APR when advertising a rate.