Getting Home Loans With Bad Credit: The Easy Route To Approval

When it comes to securing a home loan with bad credit, there is a hard way and an easy way to get approval. The hard way is to toil for months (even years) to chisel away at your debt and simultaneously save a large down payment. But the easier way is to address your credit score, and the specific fears that mortgage providers have.What makes this the easier route is the fact that the job of securing mortgage approval is done more purposefully, and with a definite target, the likelihood is that approval will be accomplished more quickly. But the trick, of course, is to do what is necessary to satisfy the criteria and convince the mortgage provider to give the green light.It is very important to note that getting a home loan under any circumstances is not simple. Approval usually takes 60-90 days and mortgage providers will always carefully assess every detail. However, there are some steps that can make the whole process run more swiftly.Qualifying For A MortgageLike all loans, qualifying is the first stage to getting approval. Without satisfying the basic criteria, lenders will not even dream of approving a home loan with bad credit. So, what are the criteria to satisfy? Well, the first is related to age, with applicants having to be over 18 years old, while the second relates to nationality, with all applicants having to be a US citizens, or legal long-term residents at least.A third condition is only logical, with all applicants having to have a reliable source of income, with full-time employment essential. Self-employed applicants have to provide tax returns to confirm their annual income, while employees must prove they have held their job for at least 6 months prior to making their application.But securing mortgage approval does not depend on meeting these criteria either. Once qualification has been established, then the small matter of proving that the home loan is affordable becomes the priority. Once this is done, then approval is extremely likely.Proving Repayments Are AffordableThere is a challenge in proving that making monthly repayments on a home loan with bad credit hanging over your head is not going to result in bankruptcy. No-one wants this, and as such, lenders are happier to reject an application than risk it.But establishing a couple of basic facts can result in any uncertainty being cleared, and convincing the mortgage provider to grant approval. The first (and most obvious) is to provide documentary evidence of your income, such as paycheck slips or bank deposit statements.The second is to ensure that the debt-to-income ratio, which is so crucial in the eyes of lenders, is in the healthiest possible state. In fact, having a low ratio makes securing mortgage approval much more likely because it proves there is enough excess income to cover home loan repayments comfortably.Terms That HelpAnyone seeking a home loan with bad credit will testify that the challenge of getting the green light is pretty significant, even with a large income. Certainly, having a good debt-to-income ratio helps greatly, but it is worth looking at the specific mortgage specifics for aid too.The biggest help comes from the actual mortgage term. Basically, the longer it is the lower the monthly repayments, and therefore the more affordable it is. And as long as affordability is established, securing mortgage approval is something of a formality.Another move that helps in securing approval is to offer a larger down payment. Admittedly, this requires some financial discipline, with 10% of the purchase price being as much as $20,000. But with a larger sum (20%), the size of the home loan required is reduced, making the deal better.