dcsimg

Mortgage Loan Approval Tips

By Michele Lerner
Mortgage Credit Problems Columnist


If you are ready to move from renter to homeowner and to establish your financial future, your first step is to apply for a mortgage. Even consumers who have had financial problems may still be able to qualify for a bad credit mortgage. The best way to find out is to enter your information on this page to get the lowest mortgage rates.

Featured Home Equity Loan Provider
    • No Appraisal
    • No Out of Pocket Costs
    • Quotes from Top Lenders
    • Lower Your Mortgage Payment - Save Here!

You may think a low credit score will stop you from gaining approval from bad credit mortgage lenders, but lenders consider a variety of factors when qualifying someone for a poor credit home loan. If you can prove that you can afford to make the payments, you may find yourself a homeowner faster than you think.

Tactics for Qualifying for Poor Credit Home Loans

  • Boost your income. A bad credit mortgage lender mostly wants to know if you will pay back your loan. If you can take on a second job or earn money from a home-based business or work overtime, do this immediately so you have proof of additional income. Use the extra money to save a bigger down payment or pay off some debt.
  • Improve your credit score. Bad credit mortgage lenders are used to seeing customers with credit scores under 700 and often even under 600. While an instant fix is usually not possible, consumers can improve their chances of approval for a poor credit home loan by paying all their bills on time in the months leading up to a mortgage application, reducing their debt, and checking their credit report for errors.
  • Gather your assets. The more cash you have to pay discount points or make a larger down payment, the more likely you are to qualify for a bad credit mortgage. If you need to borrow money from relatives, do it right away so your bank statements reflect your extra funds.
  • Improve your debt-to-income ratio. Bad credit mortgage lenders will check to see how much of your income goes to paying off your monthly bills. If you can reduce your debt or increase your income (or both) this will help your chances of qualifying for a poor credit home loan.
  • Consider buying a less expensive home. Borrowers with poor credit may need to downsize their expectations for their first home to make sure they qualify for a bad credit mortgage.

To get started, complete the form on this page to compare the lowest mortgage rates from various lenders.

Sources

http://www.homeloanlearningcenter.com

Compare New Home Loan quotes in minutes

Property Type:
State:
Credit Rating