Bad Credit Mortgage with Low Rates
With the current economic
conditions, more people than ever are struggling financially. This may be because of a job
loss, divorce or even a major illness.
These issues can sap our savings and cause us to miss payments or make late
payments as we struggle to stay on top of things. However, it is good to know
even a person with poor credit can realize the dream of owning a home. These tips are designed to help
you get a bad credit mortgage:
1. You need to do everything you possibly can to save money. Even an FHA loan, which has the
least rigorous requirements, needs you to show at least three months of house payments in your savings
2. Don't open up a new account for credit
fact, don't even apply for anything.
Every time you apply for credit it will show up on your credit report and can
lower your credit score. It is best not to have your credit pulled anytime in the six months preceding your loan
application, whether it is for a first mortgage or for a mortgage refinance.
3. Don't take out any new loans, open any lines
of credit or co-sign on anything.
4. Pay your bills on time, and don't pay in
instance, if you pay an individual rent, do it with a check because the bank will most likely want 12 months of
cancelled checks to prove your rent payment history.
5. Don't change jobs. Your lender wants to see a
consistent income from your current job in order to qualify you for the loan.
6. Don't change careers. Your job needs to be in the
same industry or field for at least 2 years to prove job stability and income.
7. Living below your means shows the lender that
you won't have to spend your last penny to purchase the home and shows that you are willing to be frugal and
8. Work with your loan officer to determine a
comfortable payment so you will know your limits when house shopping, and don't let your realtor talk you into
going for a more expensive home.
9. When you are house shopping, look for the
best deal you can get.
10. Be prepared to make a large down payment,
whether it is for a bad credit mortgage for a first mortgage or for a mortgage refinancing.
You can find loan programs that work with
individuals with bad credit, but if you follow the tips laid out here, you will have an easier time qualifying
for a loan.