BAD CREDIT SOLUTIONS
Home Loan For People With Bad Credit
by: Carrie Reeder
Getting a home loan with bad credit has actually never
been easier than it is today. Here are some tips to help
improve your chances of success:
Find A Good Real Estate Deal – If you can find a
property that has some equity in it when you purchase
it, you may have an easier time getting financing on that
property. To the lender it may be almost as good as if
you had some kind of down payment on the property. Some
lenders will consider the properties loan to value ratio
when they consider the loan. Talk to your mortgage broker
and see if this factor could help you get qualified.
Try Creative Financing – See if the seller would
be willing to carry back a second mortgage on the home.
This is where you set up a contract or agreement with
the seller that you will pay them monthly payments, including
interest of, let’s say, $150/mo on $10,000 dollars
of the price of the property, as a second mortgage. Then,
to make it nice for the seller, perhaps put in the agreement
that the entire amount is due in full within 2 years or
something. That should give you plenty of time to refinance
and then the seller doesn’t feel permanently locked
into the contract.
Save For A Down Payment – There are lenders who may
be able to qualify you for 100% financing, even with low
credit scores, but your interest rate will be much lower
if you can put even 3-5% down. If possible, try to save
as much as possible for a down payment. Sometimes it may
be better to wait about 3-6 months to get into a new home
loan if it means the difference of having a down payment.
The interest rate could be quite a bit better because
of that factor. However, if you don’t want to have
a down payment, you can always refinance later for a lower
interest rate.
Shop Around – There are some mortgage brokers out
there that you will talk to who will say, “I can’t
help you, and if I can’t help you, no one can help
you.” But, if you persist in talking with other brokers,
10 minutes later you could be talking to someone who knows
a way to help you, no problem. Most brokers feel that
if they can’t help you, no one can. However, the
ironic thing is that each broker is varied in the types
of loans they can do. Some brokers have relationships
with flexible mortgage lenders and others do not. I recommend
applying online to mortgage services that will submit
your application to multiple lenders. That way, your credit
is only pulled once, and you can analyze offers from multiple
lenders. To see our list of recommended bad credit mortgage
lenders, visit here: www.abcloanguide.com/lessthanperfectcredit.shtml
Improve Your Credit Score – There are some really
simple ways to improve your credit score without spending
too much time at it. All 3 major credit bureaus now have
areas on their websites where you can dispute incorrect
items on your credit. The process is very quick and easy.
Make your current payments on time to help your score.
Keep your number of credit inquiries down. Too many inquiries
can hurt your credit score. If you want to buy a house,
don’t apply for any credit cards, auto loans or any
other type of loan if you can avoid it. For your reference,
here are the links to all 3 major credit bureau’s
websites: www.abcloanguide.com/credithelp.shtml
If you really do want to get into a home, don’t let
bad credit stop you. There are lenders out there who can
help you, it just takes some persistence. Apply with multiple
lenders. Like I said, apply with mortgage services that
specialize in bad credit mortgage loans and will submit
your application to multiple lenders with only having
one credit inquiry.
About The Author
Carrie Reeder is the owner of www.abcloanguide.com. ABC
Loan Guide is an informational loan website with informative
articles and it has recommended lenders to help you get
the best mortgage service possible.
carrie@abcloanguide.com |
