There is no denying that it can be hard for people with low credit scores to obtain home loans. However, there are some actions you can take in order to get approved for a mortgage loan.
Check Your Credit Report
First, it is very important that you obtain copies of your credit score from at least two of the three national credit reporting agencies. Look for any inaccuracies that may be shown on your credit report and dispute those inaccuracies as soon as possible.
Get a Down Payment
Consider ways to come up with a down payment. By being able to come up with 2-4 percent for the down payment, can greatly improve your ability to get approved for a mortgage loan and/or help you get a lower interest rate on your loan.
Pay Bills On Time
If you have had credit problems in the past, then lenders will be reviewing your payment history over the past two years. They will be specifically interested in your auto, utility and credit card payment history. Fortunately, if you are consistent with those payments now, then the lender may overlook past credit problems. Likewise, lenders will be looking at your job history, over the last two years. If you have bad credit, then lenders are going to want to make sure that your income will be able to cover your monthly expenses.
Use a Poor Credit Lender
There are lists of mortgage companies online that specialize in assisting people with poor credit, to obtain a mortgage. Also, there are tips available online that can help you raise your credit score.
If you still can not get approved through a conventional mortgage lender, then you may want to try some creative financing techniques. There are many websites that can help you with this type of financing. Don’t let a poor credit score stop you from buying your dream home.
Recommended Mortgage Lenders for Borrowers with Bad Credit - We maintain a list of recommended mortgage companies online and update the list regularly.
Creative Techniques to Finance Your Mortgage- Read this article to learn some creative mortgage financing techniques.