How Do You Buy A Home With Bad Credit?
How to Buy a Home With Bad Credit Wednesday March 25, 2009 If you’ve sold your home on a short sale or gone through a foreclosure and watched your FICO score fall, you may believe that you can’t buy a home with bad credit. Some people blame the rising number of foreclosures on the appreciation explosion the wheeling-dealing, home-buying frenzy of the past five years and say that lots of home buyers got in over their heads by taking out loans they didnt understand and didnt qualify for, or that the market has turned so soft that home owners are finding themselves upside down, owing more on the mortgage than their home is worth. But the reasons dont matter because they cant be undone. What does matter is whether individuals who have lost a home through foreclosure, filed bankruptcy or, for whatever reason, have discovered their credit
Buying a home can be an intimidating process for some. Factors that make purchasing a home easy include having a great real estate agent representing you, deciding on a talented lawyer, and of course, having a great loan. Many factors go into what your loan percent will be, a big one is your credit. If you have bad credit purchasing a house can be a challenge, but it can be done. Here is how: • First off, know your credit score. Your mortgage broker will use your social security number to obtain your credit. It may not be as bad as you think. • Clean up your record. Although paying back old debt and eliminating mistakes on your credit score will not impact you ability to purchase a home on the spot, it is a good idea for the future. Some brokers and Federal Programs will overlook credit issues if you provide an explanation or if the credit issue was not your fault. • Seek financing from a private party. In some instances you can seek a loan from a private company or a family member. As
