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Bad Credit Mortgage Tips

 

There are so many people who are struggling financially with today’s economy for so many different reasons. Because of these reasons that people are struggling, they sometimes have a hard time making payments on time, or even at all. Even if you do not have good credit because of your situation, you can still find a way to be able to purchase a home, using a bad credit mortgage. The following are some tips to help you get this type of loan. 

 

1. Save, save, save, and save some more. Do anything you can to put away more money than usual, because even with an FHA loan, you need to show that you have at least three months of house payments saved up already. 

 

2.  Your credit score lowers every time you open a credit account, no matter where t is at. Do not apply or open up a credit account when you are looking to purchase a home, and especially if you are going to try for this type of loan. Do not let your credit be pulled for at least six months prior to applying for a loan, whether you are buying a home or doing a mortgage refinance. 

 

3. You shouldn’t co-sign on anything, open any new lines of credit, or take out any other types of loans. 

 

4. As hard as it might be, make sure all your bills are paid on time, and make sure you have verified checks so that your lender can look back twelve months. 

 

5. The lender will want to know that you have a stable job with a stable income, so do not change your job anytime close to applying for a loan. 

 

6.  In order to prove that job stability and income, you should probably not even change careers for at least two years. 

 

7. If your lender sees that you are on your very last cent, they might not give you the loan, so really be frugal and try not to be living penny to penny. 

 

8.  Do not let your realtor convince you that you can afford something more than your loan officer has told you that you qualify for. 

 

9.   Look for the best deal for your situation when you are house shopping. You do not have to go with the one that fits your budget to a T, but you can go with a house that is less, giving you a little more give in spending. 

 

10.  Whether you are doing mortgage refinancing or getting a first mortgage, you will want to be sure you have a large down payment saved up. 

 

Following these ten tips will give you a better idea for what to do if you have poor credit but need to qualify for a loan to buy or refinance a home.