| Buying a home with bad credit is just a matter of | | | | Probably the most common loan for people with bad |
| following the basic guidelines for making any major | | | | credit is the adjustable rate mortgage. With low rates |
| purchase. Knowing your budget ensures you don't get | | | | for the first couple of years, people can qualify to |
| in over your head. And some quick comparison | | | | borrow more. Some financing lenders will also allow |
| shopping guarantees you find great rates. The | | | | you to refinance in a couple of years to secure rates. |
| following steps will help you to secure financing at | | | | Picking the right financing package depends on your |
| reasonable rates. | | | | budget and housing goals. The average family moves |
| Step 1 - Know Your Credit History | | | | out of house in seven years. So paying for points to |
| Do you know if your credit report has any mistakes? | | | | lower your interest rates doesn't always make sense. |
| How many open credit accounts do you have? If you | | | | Step 3 - Research Lending Companies |
| don't know the answers to these questions, you should | | | | Once you have a general idea of what type of |
| take a look at a free copy of your credit report. | | | | financing you need, you can start researching lending |
| You can get your report from the reporting agencies | | | | companies and their rates. Shopping online allows you |
| or credit monitoring service companies. You might also | | | | more options that just your local lenders. Often |
| want to peek at your credit score to have a general | | | | financing companies will offer special internet deals that |
| idea of type of loan rates you can qualify for. Don't | | | | you can find on mortgage broker sites. |
| assume that just because you have some negative | | | | The best way to sift through lenders is to request a |
| credit marks that you have bad credit. | | | | free initial quote. Compare the APR of each offer, |
| Step 2 - Pick Your Financing | | | | which also includes fees. |
| There are several different types of financing available | | | | Step 4 - Lock In Rates |
| to home buyers. You can go the traditional, secure | | | | When you have found a good deal, lock in the rates. |
| route of a fixed rate mortgage. Or you can choose an | | | | You can do this by getting pre-approved for your loan. |
| interest only loan to get in with a low monthly payment. | | | | Rates can fluctuate daily, so quotes are no guarantee. |