There are actually some lenders out there that will consider giving you a loan even if you don’t have a perfect credit. But remember, there are 5 ways you should prep so you know what to expect and what not to do. Here are 5 important things to follow that will get you on track and help you get a loan or mortgage with bad credit. These tips are crucial and might even get you a loan for that house or car you rightfully deserve!
Tip #1 – Do your homework – Yes, it brings you back to school but it really is a vital element. Make sure you have all your documents prepared and ready to go. The more organized you are, the better chance you have. Imagine this, you are an interviewer and you take the interview with two people. One person is organized and one isn’t. The organized one has an unfair advantage over the disorganized one. So remember, getting everything ready the day before you apply for a loan, be prepared.
Tip # 2 – Educate Yourself- Make sure you are familiar with the terms when you try to refinance with bad credit. DO your research to know what you need to have when you get there. Always be ready. Know the terms and conditions beforehand. Also, there are tons of frauds, especially for getting a mortgage with bad credit. Make sure you understand the tricks that some may have because if it looks too rosy, it may not be true. Like the saying goes” Too Good to Be True”. Some government website with authority that may help you are the FHA organization (federal housing administration). Check it out.
Tip # 3- Don’t Lie- If there is a piece of information that you aren’t too pound of, don’t manipulate the numbers. They loan tellers like honesty more than the big numbers. Always be truthful and just hope for the best.
Tip # 4 – Fish around- Make sure you are considering every possibility. Look online for some reliable websites. Go to multiple banks and try to find some loans. Make sure you look around so you find the best one. Again, do the research. Read the terms and conditions and find out the best possible options. Also, remember even a 6% and a 5.75% percent interest rate makes a difference. That extra .25% you may be paying may cost you a lot. So don’t settle for anything before you have all the possibilities. Also, consider all the different types of loans. Hha home loan refinances to learn more about the different types.
Tip # 5 – Fix your current problems- Just because you get a loan doesn’t mean that you don’t try and fix your problems. If you have a low credit score, work on it for 2-3 months prior to getting your loan so the companies can repute you nicely. For example: If you have three cups of coffee from Starbucks every day, reduce that two. That can save you over $120 a month. Use that money to pay off some of your loans. Also maybe try homemade coffee so you have even more money to pay off debts and you can use that money somewhere else and improve your credit score. Now, remember, don’t waste that money on anything else.
If you want to get a mortgage with bad credit, follow the above five tips and good luck will certainly come your way. These tips are sure to work. Give them a try!