Posted: 1 May

Have Bad Credit? Find Out How You Can Get a Mortgage with a Bad Credit Home Loan.

Bad Credit

If you have poor credit owning a home may seem so far out of reach that you have not even considered that there may be a bad credit home loan out there that is right for you. Having bad credit doesn't have to mean that your dreams of owning a home are over. There are a few simple things that you can do to get a reasonable bad credit home loan.

Step 1:

You need to take a look at the money you currently owe to lenders. Get a copy of your credit report. Be sure to dispute any charges that you do not think belong there - next, start paying down balances. For example, if you had maxed out three credit cards one for $500, one for $1200, and another for $5000, and ended up having them all go to collections for non-payment; you need to start paying those off.

The best advice is to make the minimum payments on all of the cards and put any extra cash that you have toward the card with the lowest balance. As you pay down the balances, you can put more money onto the cards with larger balances, or you can start stashing away money for your down payment.

Step 2:

Save your receipts! Save all receipts, for your rent, your utility bills, student loan payments, car payments, everything, save it all. Save receipts for any money that you pay to someone regularly to show that you do possess the ability to pay people on time as well as pay people back.

Step 3:

Once you get your credit report cleaned up and have saved up some money for a down payment, head on down to the bank to talk about a bad credit home loan. If the bank sees how proactive you have been, they may even offer you interest rates that are on the lower side.

If you want to know more about taking out a bad credit home loan give us a call! We can guide you through the process of obtaining a bad credit home loan.

Learn More About USING YOUR HOME EQUITY TO QUALIFY FOR A LOAN