How to Get a Mortgage when You Have Bad Credit

If you would like to get a mortgage but don't know if it is possible to your credit history, then read on! We will be discussing simple strategies you can implement to ensure your chances of success. Reading this article should give you the confidence to apply for a loan, knowing that you have done everything you can to improve your odds of being approved.

Clean Up Your Credit Report

The most important thing you can do prior to getting a bad credit mortgage is to clean up your credit report. Underwriting guidelines are tighter than ever and just a few points can make a difference in wheter you are approved or declined. You will need to get a copy of your credit bureau and review it carefully for any type of error. Make sure that all of your credit card limits are reporting accurately. Credit card limits reporting too low is a common credit bureau error and getting this fixed can have a big impact on your credit score.

Once you have found the errors in your credit report, dispute them with the three major credit bureaus. This process can take up to 45 days, so make sure you allow enough time.

Pay down debt

If at all possible, now is a good time to pay down your credit card debt. You want to raise your credit score as much as you can! Paying off revolving debt is one of the quickest ways to improve your credit score.

Pay for delete

If you have older collections, do not just pay them off! The reason is that this will renew the date of last activity and could end up lowering your credit score. What you want to do is call the lender and arrange a pay for delete. In exchange for full payment, the creditor agrees to delete all negative history from your credit file. Make sure that you get everything in writing before you make a payment!

Work with a Mortgage Broker

Now that your credit is taken care of, it is time to begin shopping for a mortgage. For people who have bad credit, working with a mortgage broker makes sense. Because they are only paid if they get you into a home, they are very motivated to work on your behalf. Try to find a broker who has experience working with people with damaged credit. They will know the individual lenders criteria and be able to steer you in the right direction. They will also be able to look at your credit report and make last minute suggestions that might improve your chances of being approved.


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Vincent Polisi is the founder of CreditRepairCollege.com. To learn more about credit repair and how to get a
bad credit home mortgage loan
please visit him on the web.