Interested in Buying A Home With Bad Credit?
Having bad credit doesn’t mean you can’t buy a home. We have a credit repair for mortgage approval program to help you buy a house. Read on.
You can still buy a home with bad credit. You will pay outrageous rates and fees. The good news: subprime lenders aren’t your only option.
The best thing you can do is fix your credit as much as possible before you start your home buying process.
Cons of Buying A Home With Bad Credit
Your credit scores affect the interest rate on your loan. If you have a good crediit scores, you should qualify for lower interest rates, and this will let you pay less on your mortgage payments.
- High closing costs. Lenders offset the risk of lending to borrowers with poor credit is by collecting high up-front payments. Origination fees of 10% or more were not uncommon before the financial crisis, but regulations have dialed them back to can range.
- High interest rates. Rates on subprime mortgages are typically several points higher than those on conventional mortgages — a difference that can cost you tens of thousands of dollars over the lifetime of the loan.
- High Down payment. Lenders will often ask for down payments of 10-20% for home buyers with bad credit.
Subprime mortgages aren’t for everyone, and in an ideal world, they’re not for you. Try to navigate around them, and if you choose to get one, know the risks and steer carefully.
How to avoid Buying A Home With Bad Credit
See where you’re credit score is at right now. To improve your credit in order to buy a home, get a copy of your credit reports from all three credit reporting agencies. Because they will not be the same and you need to know what is on each one. Some creditors send information to all three agencies, but most only send reports to one or two. Mortgage lenders pull your reports and use the middle score from all three to make their decision.
If you have not ordered your credit report in the last year, you are entitled to a free copy from all three bureaus. To get your credit scores go to www.myfico.com there you will be a small fee.
Make yourself comfortable and start assimilating all the information in your reports. Check every single item. Verify that everything is correct, including your name, Social Security number, current and previous addresses, list of employers, debts and any public records concerning you.
You will most likely discover errors on your credit report. These errors will be dragging your credit score down. These errors can be caused by simple mistakes, like transposing a 6 for a 5, but they can also be due to criminal identity theft.
Now you must clean up your credit report as much as you can. This generally requires an exchange of letters. Keeping careful notes and copies of everything you do. Sending your letters via certified mail, waiting for a response. If they respond then you must send the appropriate letter including any laws you are quoting and that they are breaking, while detailing why the negative items should be removed. If the credit reporting bureau cannot verify the disputed negative information that you are disputing, they must remove the account and they only have thirty days to respond to you or they can be sued in court and ordered to pay fines.
If you don’t have all the time necessary to expend this effort, or if you feel that it is too complicated, you can easily get the aid of our credit repair agency
Our skilled and experienced people accomplish this kind of repair work every day, and we know how to make positive things happen.
After removing as much questionable items as possible from your credit report, we may the add positive accounts on your credit files to increase your credit scores and lower your down payment, monthly payments & interest rates. We will then refer you to our preferred mortgage lender and real estate agent if needed.
Ready to be a homeowner, but need assistance building mortgage ready credit?
Call Now! (702) 758-3799