If you have less than perfect or bad credit you may still be able to get a mortgage. When determining whether or not you will be approved for a mortgage the lending institution will be looking at your credit history, income and current debt load. It is important to do all that you can to pay down or eliminate existing debt, and to avoid creating new debt. Saving for a down payment is wise as well.
Bad Credit: Is it Really My Fault?
Bad credit usually comes from many sources and is not always simply the result of poor choices and over spending. Your bad credit may have been caused by circumstances and situations that were beyond your control such as a serious illness, divorce or poor choices made by another family member that has adversely affected you. Only you can honestly say how bad credit was created in your particular financial situation.
Whatever the reasons for your bad credit don’t count yourself out of home ownership or the chances to get a mortgage. Credit reporting agencies can be contacted and in certain instances you can have some of those negative financial reports removed, particularly if they occurred long ago. There is a mortgage lender that will work with you, even with bad credit but remember your loan will probably be at a higher rate of interest.
The most important thing for you to look at is the real reason for that bad credit and how you handle your finances now. If indeed your bad credit is a result of poor choices and careless spending on your part, it’s time to face that and make some changes. Once you do realize your dream of owning your own home, keeping that home by faithfully making those monthly mortgage payments for years to come is essential.
Bad Credit: Changing the Future
The first step to planning and preparing for your future is to leave your financial past in the past while retaining the lessons learned from it. Getting serious about living on a budget is not difficult once you have set some goals and made some wise decisions as to how you’ll reach those goals. You may have some habits to break that have contributed to bad credit but when you consider the long term benefits, the choices are obvious.
Keep track of your spending for a few months and you will no doubt see plenty of ways that money has simply slipped through your fingers. Take control of your money and don’t allow it to continue controlling you. You can get to the root of your bad credit and instead of a temporary quick fix, actually eliminate it. You can get a mortgage with a history of bad credit but let it be just that… history as you gain financial freedom.
No comments:
Post a Comment