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By Marie-Claire Smith
There is almost nothing a person can buy that gives him or her as much pride as does buying a home. The entire home-buying experience is really something to get excited about, including choosing a good neighborhood, going from home to home, and making an offer.
The best part, though, is walking through the front door of your new home shortly after having signed your new mortgage loan papers.
The dream of home ownership is alive and well today, despite challenges in the housing market and issues with the overall economy. Good times or bad, people continue to buy and sell homes just like at any other time in modern history.
The vision of buying a home of one’s own can feel a bit more dim if you have a poor credit (FICO) score. Most people with bad credit scores are their own worst enemies, telling themselves over and over again in their minds that they cannot possibly have the house of their dreams, given their score.
This sentiment is just not true, however. The key is to know how to shop for a home and how to pull the right ropes as you go through the mortgage loan process.
If you are on the lookout for high-risk mortgage loans for bad credit borrowers, here are 5 tips to get a good rate:
1. Find a house that speaks to your soul but that is also good to your pocketbook:
Finding just the right home on which to make an offer is such a personal decision. A home represents so many things to each of us. Your choice of home has to suit you mind, body and soul or you should just pass it up and keep searching. All of that being said, make sure that you choose a home that is well within your financial means. Given your bad credit score, you should consider buying a home that is lower-priced that the best one you could otherwise afford to make payments on.
2. Consider FHA programs and foreclosed homes:
Look at all of your options, including FHA programs (for U.S. residents) and homes that have been through foreclosure. These may allow you to qualify for special home-buying assistance or to pay less for a home at auction.
3. Shop for a loan from lenders who seek poor credit borrowers:
Some home mortgage lenders specialize in working with people who have poor credit scores. Be sure to seek out these lenders as you build a list of candidate mortgage lenders to which to apply. Your chances in qualifying for a loan will be much higher with them.
4. Order your free credit report and fix errors you find there:
If you are a U.S. citizen or resident, you have the ability to request a free copy of each of your credit reports (i.e., one from each of the major credit bureaus) each year. Go ahead and do so; then, report any issues or misreported line items that you discover in any of them.
5. Do not rest until you have applied to at least 3 high-risk mortgage lenders:
Follow through and apply to at least 3 high-risk mortgage lenders. If you apply to just one and for some reason do not qualify, just go onto the next. Even if you do qualify for an offer on the first loan application, still follow through in applying with all lenders.
Follow these 5 tips for getting a good rate on mortgage loans for bad credit borrowers and get that feeling of pride of ownership that comes with owning a house.
About the Author: Get access to more bad credit mortgage tips and lending resources at:
My Bad Credit Mortgage Lender
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Source:
isnare.com
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