| Owning your own home is the cornerstone of the | | | | your credit score less heavily if you are putting a |
| American Dream. With real estate prices at historic | | | | substantial amount down on your home loan. This is a |
| lows and the government's $8,000 tax credit, now is | | | | good faith statement to them, saying that you are |
| the perfect time to buy your first house. But what if | | | | serious and invested in the property. It also means less |
| you have less than perfect or bad credit? Should you | | | | of a risk on their part. Remember that you can pull |
| even bother looking? The answer is yes. The fact is, | | | | money from your 401k and other investments towards |
| there are some great deals available right now and | | | | your fist home purchase, sometimes with little or no |
| prices are only bound to go up. You don't want to miss | | | | penalty. You can also receive a gift from a friend or |
| out on this opportunity, but there are a few things you | | | | relative for some or all of the down payment, but you |
| need to know. | | | | will need to provide the necessary paperwork. |
| Banks are hesitant to lend to those with poor credit. | | | | The most important thing you can do is check your |
| After all, that's the reason they got in the huge | | | | credit report. 3 out of 4 credit reports contain errors, |
| foreclosure mess in the first place. You may still be | | | | so you will want to be sure that your score is not |
| able to secure a loan, however it's going to require | | | | being negatively affected by mistakes. If it is, you can |
| some more legwork and money upfront on your part. | | | | easily have them removed. Knowing your credit score |
| You will want to talk to a lender and see if you qualify | | | | will also give you insight into what loan programs and |
| for an FHA loan. Unlike traditional loans, FHA loans only | | | | interest rates you may qualify for before you speak to |
| require 3 ½% down payment, but depending on | | | | a lender. |
| your credit score, you may or may not qualify. | | | | Buying a home with poor credit is possible, but you |
| Regardless of the type of loan you take out, you will | | | | have to be smart about it. Check your credit score |
| want to put as much of a down payment as you can | | | | today and find out where you stand. |
| comfortably afford. The bank may be willing weigh | | | | |