Ginko Financial

Having a poor credit rating is nothing new, strange or something to be embarrassed about.  These days having bad credit is pretty commonplace however there are problems to be faced if you have bad credit and also want to apply for a best price home mortgage.  Getting a home mortgage with bad credit isn’t impossible but it isn’t ideal either.  You might also be upset and angry to find out that you won’t get as good deals as those with good credit.  However here are some tips you might want to follow if you want to get a home mortgage with bad credit.

So how do you know that you have poor credit?  Who told you?  If you found out because you applied for your credit reports from the “big three” known as Equifax, Experian and TransUnion then you need to get those copies out and have a look at them.  Every year you are allowed to get copies for free of charge so if it’s been more than a year you ought to re-apply.  You can also get your credit score from myFICO.  Look through all the details including your name, address, telephone number plus the financial details like bank accounts and loans.  If there is anything there that you believe to be wrong you need to let them know ASAP.  I might be that making the corrections to your credit report will increase your credit score.  Now, this isn’t guaranteed but you might as well try.  Be very careful about companies who claim to guarantee to increase your credit rating.  This isn’t actually possible, unless of course they hacked into the computer system which is very illegal.  Repairing your credit by having errors corrected is one of the best things to do and shouldn’t cost you a dime.

OK, so perhaps your credit reports are correct and simply have poor credit and that’s just the way it is.  Well, you should know that in order to get the best mortgage deal with bad credit you need to have a healthy deposit.  The bigger the better so make sure you start saving up for this if you haven’t done so already.  Anyway, there are many lenders now that don’t give out 100% mortgages because of what has happened with the recession.  They have to be much more careful about how they lend so they don’t get into financial trouble again.

When buying any property make sure you get the best deal you can.  If it’s been on the market for many months and nobody else has shown any interest there is no reason why you ought to pay the full asking price.  Instead you should try and negotiate the price down.  Auctions and foreclosed properties are very good too because they are selling for a lot less.  Just be careful you really understand what you are buying.  There might be structural problems such as rot or woodworm and you don’t want to find out that you need to spend a fortune having the place renovated.

If you are going to get your bad credit mortgage via a broker please understand that some are better than others.  Some are only OK at their job whilst others are simply fantastic.  Sometimes you might talk to someone and they tell you that you can’t get a mortgage and that there’s nothing that can be done about it.  However you may well talk to someone else who knows the system better and can get a mortgage for you no problem at all.  So don’t stop at the first hurdle.  Keep trying and shop around from as many places as possible.

If you are in a profession such as a teacher, firefighter or police officer you might be able to get a mortgage on the Good Neighbor Next Door Program.  In order to do this you have to buy a home that is in a revitalization area and is an HUD approved home.  The American Dream Downpayment Initiative is another option for those on a low income and need money for a down payment on a home.

A home mortgage with bad credit is very much possible if you are smart about it and find out all you can about the help that is out there for you.  Shop around and check out every possible route before you even think about giving up.