Homeownership,Still,Possible,W finance, share, loan Homeownership Is Still Possible With A Flawed Credit History
If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
One of the first things you should do is set a timetable for when you would like to buy a home. Depending on how damaged your credit is, you may want to put off buying a home for another year. Use that time to repair your credit by paying off creditors and create a history of paying your bills on time and consistently. Next, find out what your credit reports say about you. Consider ordering a credit report from all three of the main credit reporting agencies because not all creditors report information to the same agencies. Equifax (800-685-1111), Experian (888-397-3742), and TransUnion (800-888-4213), Once you have your report in hand, study it to make sure that the information is accurate. If there are discrepancies, make sure you follow the steps provided by the credit-reporting agency to dispute the information and get it changed. In addition, you may want to add a consumer statement on your credit report to explain any late or non-payment to creditors.When youre ready to apply for a loan, realize that your previous credit history may limit your eligibility for prime loans and low interest rates. When lenders are deciding on whether to issue a potential borrower a loan, they use various criteria in addition to payment history to evaluate the borrower such as employment, income, assets and liabilities. Based on this evaluation, borrowers are offered loans rated on a scale from A to D. The more damaged your credit history, the higher of a risk you are to lenders.Because of your blemished credit history, you will more than likely have to get a sub-prime loan. These types of loans come with higher interest rates and more points. Dont assume that just because a lender offers sub-prime loans, that you will automatically be embraced. Be prepared to explain to the lender why you had credit problems and what youve done to prevent the situation from occurring in the future. Dont feel pressured into going with the first lender willing to make a loan. Doing so may cause you to pay more than you should. Get to know your mortgage market. Shop several lenders, comparing interest rates and fees, to obtain the best loan. Compare loan costs line-by-line for various programs through several prospective lenders. Also keep in mind, that there may be other ways to get a lower interest rate, such as putting down a bigger down payment.Remember your past financial problems dont have to stop you from experiencing the joys of homeownership.Copyright © 2005 FreeHomeBuyingResources.com All Rights Reserved.
Homeownership,Still,Possible,W