No Credit Check Mortgage

In a perfect world, no credit check mortgages would exist. Unfortunately for most of us who have a credit history that is less than satisfactory, it is not a perfect world and most creditors will not extend credit of any form, let alone the high amounts that a mortgage loan usually involves, without doing some kind of a credit check. Most creditors use the FICO score in order to gauge your credit history and decide whether they should extend a mortgage loan to you. The reason for this is obvious – your credit history tells prospective lenders how safe their money is going to be if they lend it to you on the basis of your past behavior. Of course, you may feel that your financial habits and status have changed and that you are less of a credit risk now than you were in the past and that you deserve a second chance. If this is truly the case then it is best for you to go about rebuilding your credit score rather than approach a creditor who promises you a no credit check mortgage loan. This way you can be assured of a good rate and reasonable terms even if it means that you will have to wait

for sometime before you get your loan approved. On the other hand, you can be sure that a lender who promises a no credit check mortgage loan will assume the worst about your credit history (why else would you want him or her not to do a credit check?) and will set terms and conditions accordingly. You may end up paying an arm and a leg for your mortgage loan. If you need a loan in a hurry but want no credit checks, your best bet would be to borrow on your 401(k), or on your life insurance or from your stock portfolio. The advantage of doing so is that you are essentially borrowing from your own money and hence there is no credit check. However, this should essentially be a last resort.