Looking to get a home loan with bad credit? We will explain how it can be done.
There are ways that you can get a home loan even if you have bad credit, but there are things that you will first need to do to increase your chances of approval. You credit is most likely bad because you have some unpaid debts, late bills, and too much debt. Taking a month or two to clean up your credit a little bit is going to make a lot of difference when you apply for a bad credit home loan. Any large bills that are unpaid, try to put a large amount down on them and set up a payment plan. You also want to try to make your debt to income ratio as low as you can. This may mean that you trade your car in so you have a lower payment, or no payment, and that you pay off your credit cards and stop using them. By eliminating some debt and paying on bills your score should go up in about 4-6 weeks. The next thing that the bank is going to look at is your savings account, and you want to at least have 3-4 months house payments in savings. This shows the bank that if something happened to your job, you would still be able to pay them the money. Sometimes just having a garage sale or getting rid of things you don't use for cash can get you this money. After you have done all of these things you are going to want to find a lender that will work with your, and your bad credit. A great company to look for a bad credit home loan through is the FHA. There are many benefits to working with the FHA, since they accept home buyers with lower credit scores, low down payments, and they also allow others to gift the home buyer’s money. Other places to look are online, and anywhere that you can find the lowest interest rates. The lower the rate that you pay, the more money you are going to save, and the easier your house payment will be to make. Bad credit doesn't have to stop you from getting a home loan, and you can easily repair some simple things to make it more achievable. Start looking around to different lenders to see what your options are, and ask a loan officer what you can do to fix your credit and get approved for a loan. A bad credit home loan is a little harder to get, but it is possible.
Use this advice for getting a home loan with bad credit and get the home loan you desire today with all the worry!
Steer clear of personal bankruptcy with our valuable credit card guidelines
Do you use a credit card regularly? Read some of our advice about avoiding bankruptcy.
The way to make charity donations easily by using a credit card
Do you want to donate money to charity easily and quickly? Read about some of our tips for getting a charity credit card.
The way to repay your credit debt simply
Do you need to repay your credit card debt? Follow some of our advice about how to repay it simply.
