Looking for a mortgage lender that suits your requirements can be a daunting task, given the number of alternatives from which you get to choose. After all, you would want to work with a lender that is reliable and trustworthy and provides great customer service too. While the choices on offer might seem confusing, know that finding the best mortgage lender is not difficult, provided you pay attention to a few simple aspects.

Creditworthiness Matters

The best mortgage lenders for poor credit are usually not the same as the best mortgage lenders for fair credit or good credit. This is because lenders for poor or bad credit operate in a different sphere, and they pay more importance to aspects other than an applicant’s credit score when compared to good credit underwriters. The compensating factors they look at include:

  • High income
  • Low debt-to-income (DTI) ratio
  • A down payment of 10% or more
  • Time spent with your existing employer
  • Comparable rent payments
  • Large cash reserves

Your credit score has an effect on the interest rate you may get. While a good to excellent credit score brings with it the possibility of a competitive interest rate, the reverse holds true as well. This is basically how all the top mortgage lenders operate.