Bad Credit Mortgage Loans
If you have bad credit you likely believe that you will never be able to qualify for a mortgage loan. Luckily for you there are several options for people to qualify for a bad credit mortgage loan. So don't be disheartened and give up. When it comes to loans, persistence pays off in a big way.
For most people who don't qualify right off the bat here are a few simple but very worthwhile steps to take. Yes, they involve getting your credit report and fixing it. But if you want a home it is worth it. Homes cost a lot so expect to go through a simple but hard process.
Since most people with a credit score of 500 do not qualify for even a bad credit mortgage loan we need to fix our score. If you fit in this category then you are likely in luck as the steps are not that hard to get a score above 600.
First you have to get your credit report. You can usually get a free one from any mortgage broker. Mortgage brokers aren't credit specialists by trade but since they need to look at it to try and give you a loan they are a great free source of credit info.
If you have been penalized due to late payments then you have an easy fix. Simply call your credit card companies up and find out how long you have to make payments on time before they will lift the penalties.
Usually it is three to six months before they lift the penalties. After you have been a diligent bill payer your credit score will start to climb. If you have any unsettled debt now is a good time to pay those as well to raise your score even more.
Now that you know how long you need to make timely payments you now just have to do it and pay on time. Once you have paid your bills on time for a long enough period of time, usually six months, you are now ready to re submit your application for a bad credit mortgage loan.
If you still don't qualify then talk to your mortgage broker to see if there are other options available to you. In a lot of cases you can get a home with a high interest rate. You can also buy your house the old fashioned way by putting 20% or more on the down payment. The days of the super easy loan may be over but you can still get bad credit mortgage loans.
For most people who don't qualify right off the bat here are a few simple but very worthwhile steps to take. Yes, they involve getting your credit report and fixing it. But if you want a home it is worth it. Homes cost a lot so expect to go through a simple but hard process.
Since most people with a credit score of 500 do not qualify for even a bad credit mortgage loan we need to fix our score. If you fit in this category then you are likely in luck as the steps are not that hard to get a score above 600.
First you have to get your credit report. You can usually get a free one from any mortgage broker. Mortgage brokers aren't credit specialists by trade but since they need to look at it to try and give you a loan they are a great free source of credit info.
If you have been penalized due to late payments then you have an easy fix. Simply call your credit card companies up and find out how long you have to make payments on time before they will lift the penalties.
Usually it is three to six months before they lift the penalties. After you have been a diligent bill payer your credit score will start to climb. If you have any unsettled debt now is a good time to pay those as well to raise your score even more.
Now that you know how long you need to make timely payments you now just have to do it and pay on time. Once you have paid your bills on time for a long enough period of time, usually six months, you are now ready to re submit your application for a bad credit mortgage loan.
If you still don't qualify then talk to your mortgage broker to see if there are other options available to you. In a lot of cases you can get a home with a high interest rate. You can also buy your house the old fashioned way by putting 20% or more on the down payment. The days of the super easy loan may be over but you can still get bad credit mortgage loans.
About the Author:
Roger is an expert at finding mortgages for people with bad credit and other types of home loans with bad credit.
posted by Debt Consolidation Loan at
9:19 AM
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