First Time Buyers with Bad Credit – Important Advice for You

• June 12, 2017

It is generally a difficult state of affairs to be in the position of a first time home buyer, but even more so with bad credit. However, this should not make life seem impossible for you as there are a number of options available at your disposal, and which you could use to navigate your way around the situation. If this is the stage of life where you are currently, then here are some vital pieces of advice you need to help you acquire the home you so desire, even though you have bad credit:

Know what your credit score is

The first thing you should do when you need to buy a house and you have bad credit, is to know your actual score. Your actual score will help you determine if you are to approach traditional lenders or if you will be considering other options. For traditional lenders, such as banks, they may not be receptive if you have a score of anything below 620, but there are other lenders you can potentially approach if you have a score of above 500 but less than 600.

Scrutinize your credit report and have errors fixed

You may fall short of the number needed to get you approved by just a few points, which may have even been attributed to errors in your credit report. It is thus recommended that you should scrutinize the report for errors, and fix anything that is not adding up. In this manner, you can gain the valuable points you need to apply, and get approved for home loans.

Consider a large down payment

One way of giving assurance to lenders when you need bad credit loans, is to consider making a large down payment. A larger down payment will make these lenders consider your loan to appear less risky, and may warm them up to the idea of extending a loan to you, even though your credit report is not particularly pleasing.