Get Home Loan Poor Credit | How to Get Home Loan With Poor Credit Score
There are various number of people who require home loan in order to achieve their desire of getting own home. But sometimes we can see that most of the people are not having a good credit score. Thus, they are also afraid weather they will receive a home loan or not. But yes even if you are having a bad credit score there are still chances for you to receive a home loan at a poor credit score.
Thus, here in this article we will discuss about the method through which you can receive a home loan even if you are having a poor credit score. In order to learn more about this you are required to go through this article. In order to learn about how to get Home Loan Poor Credit follow the steps mentioned below.
Home Loan Poor Credit:
Check your credit score:
Well the first step under this procedure is you need to check your credit score. For this you do not need to visit to the bank you can also check it on online and also get your free credit score. However, under this method there is no need for you to sign under the trail account using your credit card, these services are completely free. You have three credit scores, one from each credit bureau.
Fix errors on your credit report:
In any case if you find any notice error then you are required to dispute them. You must assure that your entire credit report is accurate without any mistake.
Maximize your FICO scores:
However, before you apply for the home loan. You must ensure that your score is as high as it can possibly be. In order to make your credit score high you can do the following things.
- Once you have your credit score. Look after if it consist any kind of error. However, if there is any items you do not recognize, you can dispute them with the credit bureaus.
- The ratio of your credit card must be equal to your credit limit. If you have a $1000 limit on a card with a $600 balance, your credit utilization ratio is 60%, which is considered very high. You want to pay down the balances on all of your cards as low as possible.
- However, if you have any collection on your credit report. Then you must contact to the creditor and see if you can do a pay for delete. This will help you to maximize your credit score. As well as improve your chances of being approved to buy a house with bad credit.
Find Low credit mortgage lenders:
However, under the FHA there is a low credit score requirement just a 500 score with 10% down. Lenders set their own credit requirement. However, all the lenders are not able to work under these credit scores. Thus, you can contact to the multiple lenders to find one that can work with your scores.
After finding the lender you need to get pre-approval letter. For this your loan officer will need to pull your credit and verify your income and bank documents.
Find an agent and start house hunting:
After pre-approval its time for you to search for your house. For this you must start with hiring a knowable real estate agent.