You have surely heard people say that you can't possibly buy a home if your credit is not good.
At one time, it may have been extremely hard to buy a home if your credit rating was not outstanding.
Recently, though, with credit breakdowns becoming more of a problem and with new programs oriented toward helping people who have run into financial walls, the possibility of buying a home is still possible.
If your credit is less than stellar and you want to buy a home, here are a few tips for your consideration.
Find a Home That Has Equity Finding a home with some equity built into it is a great way to make it easier to arrange a mortgage.
The reason is that the accumulated equity serves as an addition to your down payment.
It might be harder to find a home that has equity built in, but your real estate agent should be able to help locate some in the area where you are looking.
Get a Good Down Payment Getting a home loan with poor credit is much easier if you have a big down payment.
Get together whatever resources you can manage.
The larger the down payment, the more committed you come across as being about this large purchase.
Since your poor credit shows that you have not been diligent about your past obligations, lenders want an indication that shows it will be different this time.
In addition, a large down payment reduces the total sum you pay over the long haul because you will undoubtedly get higher interest due to your poor credit rating.
Work on Improving Your Credit Score When you are under a lot of debt, you could wait years before you finish paying them all off.
Do you want to wait that long before being able to buy a home? Instead of waiting, find ways to clean up your credit score over the next several months.
Pay off some of your small debts like DVD rental clubs, magazine subscriptions and similar small bills that may appear to be a problem on your credit report.
Also, be sure to pay your bills on time for the next six months so it gives a clear indication that you've learned your lesson and you're prepared to be more responsible with debt.
Get a Second Opinion, Just Like in the Doctor's Office The mere fact that you have with a broker or agent doesn't mean you can't talk to other brokers or agents.
If your agent is telling you that you don't qualify for a loan with your poor credit, there's nothing wrong with talking to other agents to get a second opinion.
Other agents might have good connections in the lending community.
Buying a home is the American dream.
Some with poor credit may even think it's a dream they'll never be able to get.
These are some simple things you can do to buy a home if you are serious about the goal.
Follow these steps and be on your way to moving into a home of your own.