Searching for a home loan with bad credit? Mortgage rates have been at historic lows, which is great if you have good credit. But it can be frustrating if you have bad credit and are not eligible for the best rates or mortgage loans. However, even if you have bad credit, you may still be able to get a home mortgage loan. Take a few proactive steps and you may be able get the loan and house at an affordable interest rate.
First, fix your credit score. Order a credit score and look for any mistakes or missed bills. Call any creditors to correct any possible mistakes. You may be surprised how quickly some errors can be fixed, and how quickly and dramatically your credit score can improve.
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If possible, pay down some of your credit card debt. If you are carrying a large balance on one or more cards, it will lower your credit score. Do not open and cancel any credit cards while you're looking for a home mortgage loan, as these actions can hurt your credit score.
Talk to a few different lenders and ask about their various loans. Find out what interest rate you would be eligible for, and shop around for the best deal and type of loan that suits you. Even if you have bad credit, mortgage loans come in all types. Even if you do not qualify for the best rates, you may be able to get some competitive rates and options when you compare home loan quotes with several lenders.
There are many great resources online that will help you. Our site offers valuable tips to get a mortgage loan with bad credit, and will also connect you with mortgage brokers and home mortgage lenders to help you in the process.
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