Bad credit history is something that will reduce your chances of qualifying for a good home loan deal. If your credit record is bad many lenders will not be able to offer you an attractive. You therefore need to work hard to fix your credit record first before you can get a loan. Below are some suggested tips you could consider for you to get a quick home loan.
Repair your credit report
This is your first step in preparing your self for a home loan application. There are many ways of fixing your credit history and here are some of the things you can do;
- Pay off outstanding payments, this will also include your utility bills and store accounts.
- Check with the credit bureau whether they have updated your credit report
- Check for errors on your credit report; it is possible to find some information and figures wrongly entered on your credit report. This should also be reported to the credit bureau. Statistics show that one in every five entries done in a credit report will be somehow wrong
FHA home loans
You can also try and apply for FHA home loans because it is easy to qualify. These government home loans are also given to people with bad credit. You only need to meet their selection criteria. For more about their requirements you can check on the government website.
You could also try and apply your home loan from lenders that offer home loans to people with bad credit. Although they may give you a loan they still require you to repair your credit record. You must work at reducing your credit record up to at least 630. This process does not happen overnight so you need to take your time before you can start applying for a home loan.
How to get a cheaper and quicker home loan
Even if you have got bad credit you can still work and make an effort of getting a cheaper loan. There are many ways of doing this. You could save money for your down payment and make sure it’s quite significant, even up to 10% of the loan amount if possible. If your down payment is high you get fewer charges in interest rates and even other penalties. It will also reduce the amount of time that you are going to spend repaying the loan. Try to get some extra income from part time jobs and this will greatly help you to achieve your dream of owning a home.
Tips and comments:
Avoid bad credit by all means
Do not trust those people who claim that they can help you to repair your credit report, most of them are scammers they are just after your money. The best person who can do this is you. Avoid unnecessary spending and save that money towards your down payment. You could also use the money to pay off your bills and other creditors. You need to be responsible financially and do not buy things that you don’t need or things that you can not afford. A home is the biggest investment anyone can ever have in life.