here was a time when For starters, you should obtain a
buying a home with bad copy of your credit report from
credit was next to all three of the credit agencies:
impossible. Fortunately (for TransUnion, Experian and Equifax.
people with bad credit), times Review them closely for errors.
have changed. The last thing you need are
errors that drag your credit
This change is the result of many score lower than it should be.
factors: increased competition in
the mortgage industry, a wider If you find an error on your
variety of loan programs, report, you can dispute it online
Internet-based lending, etc. Some through the credit agency's
lenders today even specialize in website:
offering home loans to people
with bad credit. www.equifax.com *
www.transunion.com *
Like I said, times have changed. www.experian.com
But while it has gotten easier to 2. Shop for a lender.
buy a home with bad credit, you
still need a solid plan of Do plenty of research to find a
action. Here, then, are your four good lender. Be wary of predatory
steps to home buying success: lenders who take advantage of
people with bad credit (because
Buying a Home with Bad Credit – they don't have as many loan
Four Steps to Success options). Get quotes from
multiple lenders. Ask around. Go
1. Get a copy of your credit with trusted names. Do some
report. online research to identify “red
flag” lenders.
rate. And that leads us to step
Here’s some good news -- through #4.
a combination of government
regulation and increased 4. Refinance as soon as possible.
competition in the mortgage
industry, the number of reputable
lenders who offer bad credit Buying a home with bad credit can
mortgage programs continues to actually help you improve your
increase. credit. By holding down a
mortgage and making payments on
3. Focus on improving your time, you can eventually elevate
credit. your credit score to the point
that you quality for a lower
Improving your credit score will interest rate.
help you in the short term (to
obtain a loan) and the long term When that happens, you can
(to avoid bad credit situations refinance the mortgage at the
for good!). You can improve your lower rate, which will in turn
score by paying bills on time, lower your monthly payment and
especially your mortgage. get you back on track. Better
credit, lower mortgage. You can
Don't open any new lines of do it!
credit, and try to pay down your
existing lines of credit. Once * Copyright 2006, Brandon
you raise your credit score, Cornett.
you'll be able to refinance the
mortgage at a lower interest
About the Author:
You can learn more about buying a home with bad credit by visiting http://HomeBuyingInstitute.com, the Internet's largest library of home buying tips and articles. Visit: http://www.HomeBuyingInstitute.com
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