Ten Tips to Make you More Attractive for a new Home Loan – even if you have bad credit



It’s no secret that lending standards have gotten tougher. It’s harder to qualify for a new home mortgage loan for just about everyone, not just those with bad credit. It’s also more difficult to crack into the top tier of credit scores that would earn you the best loan terms.

So, should if you have less than perfect credit, should you give up on approaching mortgage lenders? Of course not – but it definitely helps to have a strategy. It may take a little longer to get a mortgage with fair or bad credit, but here are ten things to do to overcome that bad credit and appeal to lenders:

  1. Make your credit and loan payments on time. The first and most important step toward overcoming credit problems is to change the habits that led to those problems. Think of it this way: credit problems are part of your history, and you need to start writing a new history. You do this by putting together a track record which shows you are now able to consistently meet your financial obligations.

  2. Understand your credit problems. While you build toward the future, it’s important to understand your past. Get a copy of your credit report to see what the problems are. Identify what caused those problems. Were they one-time mistakes? Do they indicate that you live beyond your means from time to time and need to rein in your lifestyle? Or are your credit problems simply a result of poor organization, of not keeping track of your bills and their due dates? The more you understand about what caused your credit problems, the better you’ll be able to address them.


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