Many people desire to purchase a home. One of the main reasons is that over time it is quite a worthwhile investment. This means that in the long run, you can be making money instead of just padding the landlord’s pockets. But not everyone has picture-perfect credit ratings. Can you get a mortgage with bad credit? The answer is yes! You can get a mortgage with bad credit. You may have to work a little harder to prove yourself to a qualified lender but it is certainly possible.
You will need to be able to prove to a lender that you can indeed repay a loan. They will be looking at your employment history and the level of your income. If you have job stability and a decent income it is very possible to work out a deal with most lenders.
To help yourself along in your cause, create a budget. Make sure to list every single penny that is coming in as well as every cent going out. You have to first see if it is actually a realistic expectation. You will need to see on paper that you can pay all of your present bills without falling behind and also be able to pay a loan payment for your home. This will also be some valuable information to share with your lender.
Pay more than the usual 3 percent down payment. Pay as much down as you possibly can. 20 percent down would be very convincing to any lender. It would prove that you are very serious about wanting to obtain the loan. But it will be beneficial to you in the long run since it will also save you all the interest that would have accrued.
You can get a mortgage with bad credit, but first, you will want to do some research on the lenders in your area who are willing to work with people who have less than perfect credit scores. A lot of banks will shun away from potential borrowers because of the lower scores. But there are many lenders both on and offline that will deal only with people who have poor scores. If your banker cannot help you, do not get discouraged, just find one who will work with you and your present situation.
If you simply cannot find any lender who will work with you, try to find a cosigner. A person that you know who has very good credit would be great. If you can find a qualified, and willing, cosigner it can increase the chance that you can get a mortgage with bad credit.