Low interest rates combined with falling housing prices make this the ideal time to purchase a home. If you have a poor credit history, you may be wondering if you will ever qualify for a mortgage. Fortunately, there are many options still available to you to purchase a home despite less than perfect credit.
Mortgages for people with bad credit are available, but applicants must prepare before attempting to secure a mortgage. First, assess your credit profile by reviewing copies of your credit report from all reporting agencies. Take note of any incorrect information and request that the information be corrected or removed by writing to the agency in question. Second, begin to prepare for your purchase by carefully determining how much you can afford to pay for a house. You must save 20% of the purchase price for a down payment, in addition to fees for closing costs and other expenses. Third, you should seek the services of a quality buyers agent who will guide you through the process of purchasing a home. Even if you have bought a home before, a buyers agent can serve as an invaluable resource for finding available properties within your price range and in negotiations with sellers. When you have completed these steps, you are on your way to getting a mortgage at a rate you can afford.
If you cannot find a traditional mortgage, you may be able to get a mortgage from private money lenders. Although these lenders generally concentrate on commercial and residential development projects, they also make loans to people seeking financing for a home purchase or refinancing. When you are seeking a mortgage with less than perfect credit, the important thing to do is to be prepared and open-minded. With a great deal of perseverance and patience, you can get a mortgage with bad credit.