By Horace Hawkins
Just because you have negative items on your credit report doesn't mean you
can't obtain a home mortgage loan. There are options for you. Bad credit is not
the end of the world. It's true that getting a bad credit mortgage loan is not
always the easiest or fastest mortgage loan out there, but you can still buy
your own home even with bad credit.
Bad credit shouldn't stop you from getting a home loan. There are credit repair
options. Most mortgage brokers will do everything they can to get your credit in
good shape for your home loan. They work with you on finding the mortgage loan
option that's right for you. You can get a home loan, even if you've had a
bankruptcy or a foreclosure.
There are several bad credit mortgage loan options available for the credit
challenged and even people with no credit at all, such as:
•
Sub-Prime Mortgage Home Loans
•
Stated Income Mortgages
• No
Money Down Home Loans
• Jumbo
Loans
•
Adjustable Rate Mortgages
Step One: Know Your True Credit
Score
Perhaps you've already been turned
down for a mortgage because of a negative credit report or having no credit at
all. Perhaps you've filed for bankruptcy. Whatever the case may be—You know your
credit is bad.
But do you know how bad?
Are you sure your credit report is accurate? Eighty percent of credit reports
have mistakes. At
Mortgage-Loan-Advantage.com we help you find out if your credit is really as
bad as you think it is. Here's what we can help you do:
• Get a copy of your credit report.
•
Verify the items listed on your credit report.
• Take
steps to repair any errors on your credit report.
• Take
steps to remove errors on your credit report.
•
Monitor your credit regularly.
Step Two: Consider Your Options
You really have two options, once you know what your credit score is. You can
contact a bad credit mortgage lender and accept that for a while you must pay a
higher interest rate than you would if your credit was perfect.
Or you can wait and try to fix your credit and bring up your credit score before
you buy a home.
If your credit history is not that bad, you might want to take some time to
bring up your score. To improve your credit score:
• Pay off as much debt as you can.
• Pay
your bills regularly and on time.
• Don't
apply for too much credit.
Step Three: Prepare Yourself with the Facts
Before you approach a bad credit mortgage lender, prepare.
Assess your financial situation. Do you have the income to add a mortgage to
your debt load? Have you made as many lifestyle changes as possible to reduce
your debt? Have you done all you can to bring up your credit score?
If the adverse credit items on your credit report occurred because of some
reasons beyond your control, for instance, illness, job layoff, marital problems
or other temporary setbacks, you must provide a written explanation of your
circumstances to the bad mortgage loan officer. This can be provided with the
loan application or at some other point in the loan process. If you have had
sufficient time to regain financial stability since the problems occurred and to
demonstrate prompt payment, the lender may offer some consideration on the
rates.
Horace Hawkins is the President of
Mortgage-Loan-Advantage.com
and
HoraceHawkins.com. As a mortgage loan
broker, Horace serves the Dallas Fort Worth Metroplex with superior home
mortgage loan services.