If you have bad credit and want to get a mortgage loan do not despair. There is still hope. In fact there are several ways that you can still qualify for a mortgage loan. So let's look at what is one of the best and cheapest options.
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.
Most people that don't immediately qualify for a mortgage loan due to their bad credit have scores in the 500 range. If this is you then you are in luck. If your score is in the five hundreds then it shouldn't take more than a year to get it to 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.
Once you know the info you need to make your payments on time. Over the course of a few months you can bump up your credit score quite a bit. You then want to go back to your mortgage broker and see if you qualify for a bad credit mortgage loan.
If you still do not qualify then talk to your mortgage broker on what other options you have. A lot of brokerages have special programs set up to give you a bad credit mortgage loan. Yes, the fees can be high but you will be able to get your home and once your credit is fixed you can get lower fees.
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.
Most people that don't immediately qualify for a mortgage loan due to their bad credit have scores in the 500 range. If this is you then you are in luck. If your score is in the five hundreds then it shouldn't take more than a year to get it to 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.
Once you know the info you need to make your payments on time. Over the course of a few months you can bump up your credit score quite a bit. You then want to go back to your mortgage broker and see if you qualify for a bad credit mortgage loan.
If you still do not qualify then talk to your mortgage broker on what other options you have. A lot of brokerages have special programs set up to give you a bad credit mortgage loan. Yes, the fees can be high but you will be able to get your home and once your credit is fixed you can get lower fees.
About the Author:
Roger instructs people about finding a good bad credit home loan mortgage and about their options for home loans bad credit.
No comments:
Post a Comment