Home Financing with Bad Credit
Millions of American consumers suffer from low fico scores that have prevented them from buying a home with bad credit. Connecting with a lender today that offers low credit financing solutions, has become a serious challenge, because so many banks and lenders shut down their subprime loan divisions in the wake of the housing crisis and the subprime mortgage crash a few years back. Since then, each year has gotten a bit tougher to buy a home with bad credit, but the financing programs do still exist, but you need a map to find the treasure guarded by the last few mortgage lenders taking risks on poor credit home financing.
Tips for Home Buying and Navigating through the Loan Process with Bad Credit
By Brandon Cornett
4 Successful Steps for Purchasing a House with Bad Credit
1. Get a copy of your credit report.
First off, get a copy of your credit report from all three of the repositories: TransUnion, Experian and Equifax. Review them closely for errors. The last thing you need are errors that drag your credit score lower than it should be.
If you find a mistake on your report, you can fight it online through the credit agency's website:
www.equifax.com * www.transunion.com * www.experian.com
2. Shop for a Lenders that have Experience Lending to People with Low Credit.
Research loan companies online to find a lender or bank that extends credit. Be wary of predatory lenders who take advantage of people with bad credit (because they don't have as many loan options). Get quotes from multiple lenders. Ask around. Go with trusted names. Do some online research to identify "red flag" lenders.
Here's some good news -- through a combination of government regulation and increased competition in the mortgage industry, the number of reputable lenders who offer low credit finance programs continues to increase.
3. Do things that will have a positive impact on your credit report.
Improving your credit score will help you in the short term (to obtain a loan) and the long term (to avoid bad credit situations for good!). You can improve your score by paying bills on time, especially your mortgage. Don't open any new lines of credit, and try to pay down your existing lines of credit. Once you raise your credit score, you'll be able to refinance the mortgage at a lower interest rate. And that leads us to step #4.
4. Get approved for to finance a house as soon as possible.
Purchasing a property with less than perfect can sometimes help your credit ratings. By holding down a loan and paying the mortgage on time, you can eventually elevate your credit score to the point that you quality for a lower interest rate.
Learn more about buying a home with bad credit by visiting HomeBuyingInstitute.com, the Internet's largest library of home buying tips and articles. Visit: http://www.HomeBuyingInstitute.com
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