Bad Credit Mortgage Loans
Many people think that if they have bad credit that they won't be able to get a mortgage loan. While there is a bit of truth to that there are a lot of options that you should look at before you give up.
Most people that can't initially qualify are going to take the same first step. They need to get a copy of their credit report. After all if you don't know what is wrong with your credit then you will have a hard time getting it fixed.
People who don't initially qualify for a bad credit mortgage loan will have a credit score in the 500 range. This is bad but is easily repaired. In fact a lot of times you can get a good enough score to qualify in less then six months.
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.
Once you have your report look at it and see why your score is so low. Most of the time it is because you have been delinquent on several credit cards. In some cases it is due to you defaulting on some credit cards or other debt payments.
If you have been penalized due to late payments then you will want to call your credit card companies and find out how many on time payments in a row you must do before they take the penalty off of your credit history.
Now that you know how long you need to make timely payments you now just have to do it and pay on time. Once you have paid your bills on time for a long enough period of time, usually six months, you are now ready to re submit your application 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.
Most people that can't initially qualify are going to take the same first step. They need to get a copy of their credit report. After all if you don't know what is wrong with your credit then you will have a hard time getting it fixed.
People who don't initially qualify for a bad credit mortgage loan will have a credit score in the 500 range. This is bad but is easily repaired. In fact a lot of times you can get a good enough score to qualify in less then six months.
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.
Once you have your report look at it and see why your score is so low. Most of the time it is because you have been delinquent on several credit cards. In some cases it is due to you defaulting on some credit cards or other debt payments.
If you have been penalized due to late payments then you will want to call your credit card companies and find out how many on time payments in a row you must do before they take the penalty off of your credit history.
Now that you know how long you need to make timely payments you now just have to do it and pay on time. Once you have paid your bills on time for a long enough period of time, usually six months, you are now ready to re submit your application 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.
posted by Credit Counseling at
6:54 AM
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