Have you got bad credit? Low credit score?

If you're applying or re-applying for a mortgage and you have a low credit score, you may have to deal with a sub prime lender for a mortgage. These are companies that specialize in dealing with "high risk" clients. High risk clients are people who have a low credit score and bad credit.

My concern is that these sub prime mortage lenders might try to add more services charges and higher interest rates than necessary to put the deal together for you.

If you have bad credit, you should as the following questions to several high risk mortgage lenders:
? Is this the lowest interest rate you can offer me?
? What are all of the separate services charges you're charging me?
? Do I have to pay these service charges?
? What are the interest rates at different levels of credit scores? ie... 10.9% for 680 credit score... 15.9% interest rate for 550 credit score. 5.5% rate for 750 credit score.
? What is the lowest down payment I can make based on my credit score?

A lower down payment means usually means that the creditor has to assume a higher risk. A lower down payment might also mean that you don't have much reserves to cover payments in the future.

The worst case scenario is that you've got a bad credit score and a very low down payment. You may get a mortgage, but the sub prime lender is going to charge you as much as he can to offset the higher risk.