Buying a home with bad credit

 The Mortgage U! Mortgage Education Made Easy

For all your mortgage needs:
Dave Zwierecki
Phone 888-418-4467

 Home  |  About Us  |  Calculator  |  Contact Us  |  News   |  Blog  |  Sitemap 

 

Google
 
 
Buying a home with bad credit
There are many options available for consumers looking to buy a home with poor credit. The first step that needs to be taken is to call a mortgage broker. Contacting a mortgage broker will let you know how much of a home you qualify for and provide you with a pre-approval. A mortgage broker works with hundreds of different lenders throughout the nation which allows him or her to be able to access thousands of more home loan programs than a traditional bank. What this means to you is a better chance of finding a mortgage lender that will provide you with a loan and a better chance at obtaining a better interest rate.

Believe it or not, if you have less than perfect credit you are part of the majority and that being said, there are probably more lenders and programs available to you...

You want to look for brokers who specialize in helping those with bad credit or credit challenges. There are programs available now with 100% financing for scores lower than 550. If you're below (sub) 500 in your score then you will probably need an equity based lender where they loan on the equity in the property and are not score driven.

When your credit is poor and you believe it will be an obstacle in purchasing a home, you should take a few immediate steps to help clean up your credit report. Begin by paying your bills on time, every time. This may sound like an obvious answer, but paying the minimum payment every month is better than paying it late or not at all. Owning a home is a major responsibility, so even if you haven't paid close attention to your finances before, make a serious commitment to do it now. Secondly, review your credit report and make a list of the issues that need to be dealt with. Your mortgage broker can help you to do this, outlining a clear plan to improve your credit. You have the option of hiring a credit repair company and you can also ask your broker for a reference for a reputable firm. Your mortgage broker may already have a relationship with a trusted company.

Buying a home with bad credit is more common than you might think. As people's financial situations turn around, they often begin thinking about buying a home. Their credit scores and histories can take years to catch up to their new financial situation.
Your initial interest rate will be higher than if you had good credit. However, your mortgage professional can help you set up a plan to improve your credit score and refinance to a lower rate and payment in one to two years.

Many people assume that their credit is worse than it is. Before assuming your credit score is too bad to buy a home, contact a mortgage professional. He can pull your credit report and review it with you. Then you will have a good idea what your options are.

 

Contact Us
If you have any questions regarding our products, you can contact us by calling or e-mailing us and we'll get back to you as soon as possible. Thanks!


Name
Current Address
City, State, Zip Code
Phone
E-Mail
Purchase/Refinance/Debt Consolidation

Comments/Questions/:



 
 
 Information listed above is to be used for educational purposes only and is not guaranteed

Home | Contact Us | News | About | Sitemap | Bad Credit | Homebuyer | Sitemap3 | Sitemap4 | Sitemap5 | Sitemap6 | Sitemap7 | FS Home Loan | No Money Down | First Security | Blog| Privacy Policy

Copyright 2007 First Security Financial Services, Inc.  All Rights Reserved... First Security Financial Services is a full service mortgage provider offering  mortgage educational tools in addition to hundreds of mortgage programs.                                                                                                                     Loan Officer | Do Credit Inquiries affect my credit score | PMI tax deductible in 2007 | 100 Financing - Investment Poperties | Zero money down home loan | Frequently Asked Questions - Credit