Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.



Published on

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this


  1. 1. There is a lot of great opportunity in the housing market of today. However, for potential homebuyers with bad credit, finding a home loan may put a stop to capitalizing on this great buyers market. However, it is possible to obtain a home loan with bad credit as long as you are aware of the particular obstacles that will be present. You need to be prepared to take a hitin terms of interest rates and closing costs andbe ready to answer any questions that a lender might have.westernsky
  2. 2. If you are willing to shop around, though, getting a home loan withbad credit is possible The internet is the best place to start thissearch, and this article will help you learn how Meeting the MinimumRequirements The qualifications you need to get a home loan arevery similar to those needed for any type of loan However, bear inmind that the wiggle room, especially in terms of income, for homeloans is far tighter That is because a home loan will likely be a6-digit figure with an obligation for repayment over the course of 30years
  3. 3. Therefore, before you even begin the search for a loan, make surethat you meet these minimum requirements: 1 You must be 18years old or more 2 You must be a citizen of the United States
  4. 4. 3 You must have a steady source of income which you can prove issufficient enough to cover the mortgage payment each month inaddition to all of your other bills and obligations 4 You must be ableto make a sizeable down payment (generally 20-25% of thepurchase price) and cover the closing costs of your loan
  5. 5. Searching for a Loan Once you have made sure that you meet theabove minimum requirements, beginning your search for a homeloan with bad credit is simple enough You can use the power of theInternet to look for lenders who are likely to service borrowers whosecredit is less-than-ideal by searching for "home loans with bad credit"though your favorite general search engine You will find that literallydozens of lenders pop up, which is why your chances of getting aloan is greatly increased Take time to review the website of 8-10 ofthese lenders and then choose 3-6 that look the most promising
  6. 6. Do some background research on these lenders through the BetterBusiness Bureau or similar websites designed to provide users witha breakdown of the general business practices of online entitiesOnce you find a list of at least three lenders to work with, submit yourpreliminary paperwork Generally, there will be a basic form to fill outright on the lenders website Once your information is received, youwill get a call from the lender who will further discuss your home loanoptions with you
  7. 7. Some Realities Remember that, though getting a home loan withbad credit is possible, the offers that you receive because of yourbad credit will not be the best that westernsky the lender can doInstead, be prepared to pay an interest rate that is several pointshigher than those you see advertised Also, remember that in buyinga home with bad credit cash is king The more money you can offerup front in good faith, the more likely a lender is to work with you toprocess your loan
  8. 8. Once you purchase you home and begin to repay the mortgage,your credit score will slowly improve When that happens, you canlook forward to refinancing your initial home loan for a better interestrate In this way, getting a home loan with bad credit is actually thedoor to a better financial future
  9. 9. westernsky