|
BUYERS GUIDE
Bad Credit Home Loan Tips to
Get a Home Loan
by Carrie Reeder
Do you have bad credit and are trying to get approved
for a home loan? Getting a mortgage loan with poor credit
history can be difficult, but its definitely possible.
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, lets 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 doesnt 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 dont 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
cant help you, and if I cant 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 cant 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
this page: 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, dont 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 bureaus websites: www.abcloanguide.com/credithelp.shtml
If you really do want to get into a home, dont 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 ABC Loan Guide. To view
her list of recommended bad credit mortgage lenders visit
www.abcloanguide.com/lessthanperfectcredit.shtml. Her
website contains informative articles about mortgage loans
and lists of recommended mortgage lenders. |
|