Are you looking for a home and have a credit score below 620?
You will probably have to obtain a low credit score home loan.
Knowing how to prepare and what to look for will make the
process easier.
Know your credit - Pull a credit report and find out your
exact FICO score. Examine your credit report for any errors.
Immediately report any discrepancies on your credit report.
Prepare your documents - Assemble a personal history
file. You should have your tax returns for at least the last two
years. Have pay stubs for a full calendar year or an income
verification letter from your employer.
Save for a down payment - Every dollar put down makes
getting a low credit score home loan easier. Down payments may
also help you get a lower interest rate and a lower monthly
payment.
Shop for lenders - Even borrowers with low credit scores
will find numerous home loan lenders. Select several to
interview. Check their backgrounds with the Better Business
Bureau or obtain references from friends. Arrange to meet with
your chosen loan agents. Discuss the amount of mortgage you can
afford and the type of loan your credit will require. Even with
a low credit score you may be able to pre-qualify for a loan.
Pre-qualifying makes the actual hunt for a home much easier.
Negotiate terms - The low credit score home loan market
is very competitive. Don’t be afraid to negotiate and don’t be
intimidated by the lenders. Ask if better terms are available.
Disclaimer: This information is provided with the understanding that the
authors and publishers are not providing legal or financial advice.
ABC Loan Guide assumes no responsibility for the completeness or
accuracy of the information respresented on the website. The content
provided on this website is based on information available at the time
of publication. ABC Loan Guide does not presume to advise people about
their personal financial situation.
Readers should consult a financial professional about their own
situation before acting on any information found on this website.
