How do I get preapproved for a mortgage?

Check your credit, gather income and asset documents, compare lenders, and submit an application. A preapproval letter shows sellers you’re qualified and is usually valid for 60–90 days.

What credit score do I need for a personal loan?

Many lenders target 640+, but options exist for lower scores at higher APRs. Improving utilization, paying on time, and disputing errors can raise your score before applying.

Is refinancing worth it in 2025?

It can be if your new APR is sufficiently lower to offset closing costs within your break-even period. Use a refinance calculator and compare at least three offers.

How can I lower my insurance premium?

Increase deductibles, bundle policies, maintain good credit, ask for telematics or multi-policy discounts, and shop quotes annually.

What’s the difference between APR and APY?

APR is the annual rate without compounding; APY includes compounding. For loans, compare APR; for savings, compare APY.

What DTI ratio do lenders prefer?

Many mortgage lenders prefer a total debt-to-income ratio at or below 43%, though program limits vary. Paying down debt or increasing income can improve approval odds.

How To Get A Mortgage With Bad Credit: Buyer’s Guide (2025)

Credit history documentation

Overview of government assistance programs

Eligibility criteria

What are the signs of predatory lending practices?

5. What should I do if I can’t make my mortgage payments?

If you’re struggling to make payments, contact your lender immediately to discuss options like loan modifications or payment plans.

6. Can I refinance my mortgage if I have bad credit?

Refinancing is possible with bad credit, but it typically comes with higher interest rates. Improving your credit score before refinancing can lead to better terms.

7. How long does it take to improve my credit score?

Improving your credit score can take several months, depending on your financial behavior and the actions you take to address negative marks.

Finance Loan Advisor