Get A Free Report On Making a Fortune with Apartment Building Properties

You should beware of all bad credit mortgage offers, but you need to be particularly careful about paying fees in advance.  Any company that charges an advance fee in order to guarantee your loan will be approved is not a “real” lender.  No real lender will guarantee approval even after the application process has been completed.

Because of recent failures in the banking industry, people sometimes find that they wait for months, being told initially that their loan will be approved, only to find out later that the application was denied for some reason.  Banks that are insured by the FDIC have been advised to carefully evaluate all applicants and avoid all risks.

It is possible to go through private lenders.  Since they are not concerned about meeting FDIC requirements, they may accept lower scores than a bank or other lender.

Mainly, private lenders want to be sure that you can make your monthly payments.  Typically, they charge higher interest rates.  So, you can expect your monthly payments to be higher than they would be with a bank or large company.

Any bad credit loan mortgage will be accompanied by higher interest rates.  If you have had financial problems in the past, but no bankruptcy, you may be able to work to improve your score before you buy.  You can do that by paying your bills on time and paying down your debt, if you still have any.

If you have never financed an item or had a charge card, you will need to establish a credit history.  There are a number of ways to do that.  Departments store charge cards are usually the easiest to qualify for, but they have the highest interest rates.

If you have a history of paying slow or your creditworthiness has been damaged in another way, you should consider working to improve your rating, before you apply for a bad credit mortgage.  It may take a little longer, but you will save money in the long run.

If you have declared bankruptcy, you will need to start over again, just as someone that has no credit history at all.  Most bankruptcy lawyers say that you can qualify for a charge card within a year and if you maintain that account properly, you can qualify for a home loan in five years.

Policies vary from one lender to another, few will advertise that they offer a bad credit loan mortgage, but maybe your history or your score is not as bad as you think it is.  It never hurts to sit down with a lender and talk about it.

A substantial down payment, an uninterrupted job history and a substantial monthly income will work in your favor.  It may be harder to get a bad credit mortgage today and it may take a little longer than you had planned.  But, if you keep trying, you should be able to find a solution.

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Get A Free Report On Making a Fortune with Apartment Building Properties

Here are eight tips for first time home buyers.  They are not arranged in order of importance, as one is just as important as any other.

1. Decide where you want to live.  If you have children, you will want to consider the schools in the neighborhood.  Most parents, particularly of elementary school children, find that they prefer to live within close proximity of the school.  You may also want to consider where your job is located, how long the commute will be and what the traffic is like.

2. Make a list of “must haves”.  Things that are essential include an appropriate number of bedrooms and bathrooms.  If you have kids or pets, a nice backyard may seem attractive.  But a nearby park or playground can take the place of a large backyard.  Remember that caring for a lawn takes time, something that you might not have a lot of.

3. Calculate an affordable monthly payment for your family’s income.  Use my online calculator for this purpose.  Most experts feel that a monthly mortgage payment should account for no more than 30% of a family’s monthly income.

4. Learn about your credit rating.  Any lender will need to check your credit rating, before they will qualify you for a mortgage.  You may want to check your credit record ahead of time to be sure that it does not contain inaccurate or outdated information.  Things like that could affect your ability to qualify for a loan.

5. Compare mortgage interest rates and decide on a lender.  The interest rates charged by banks and mortgage companies vary greatly.  The easiest way to compare rates and fees is to use the internet.

6. Consider an FHA, HUD and other special home buying programs.  Most lenders have access to these programs.  If you are a teacher, a police officer or a firefighter, there are special programs designed to help you find an affordable home in a nice neighborhood.  These programs are particularly helpful in areas where the cost of living and average home prices are high.

7. Beware of predatory lenders.  Most people have heard about past predatory lending practices that have gotten good people into a lot of financial trouble.  To protect yourself, take advantage of federal, state and local resources.  Be sure the mortgage company or bank is reputable.  Contact a housing counseling agency for more information.

8. Find a couple of houses that you can afford.  Get the inspections and make an offer.  Some negotiating may be involved.  The owner might come back with a counteroffer.  Working through a realtor or real estate agent might make it easier for you, because of their experience.

Hope these eight tips for first time home buyers make it easier for you to find an affordable place to live that you truly love.

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