Home Loans Made Simple

How to see if you need a Bad Credit Home Loan and what to do if you
have bad credit history

The information in your credit history helps mortgage lenders decide how much credit and what interest rate you are eligible for, and then match it to a bad credit home loan. The better your credit history, the more likely you are to qualify for the best credit deals.

The first step is to understand if you are considered a credit risk. Most lenders will consider you a higher credit risk only if your credit report states that you have more late and slow payments than what is shown below:

Revolving credit (i.e. credit cards): No payments 60 days or more past due and no more than two payments
30 days past due.
Installment credit (i.e. car loans): No payments 60 days or more past due and no more than one payment 30 days past due.
Housing debt (i.e. mortgages and rent): No payments past due. This can be proven by providing (borrower's) canceled checks for the past 12 months or a loan payment history from the mortgage service.

OK, so you have bad credit, but how bad is it? The very first step to obtaining a bad credit home loan is to obtain a credit report, along with your credit scores. There are 3 main credit reporting agencies used by the mortgage Industry and they too will usually pull a credit report. Then the credit score contained within the credit report is used to determine your credit worthiness. And all this will determine which of the bad credit home loan products would suit you.

There’s so much to think about when looking at the various bad credit home loans available; we’ve already found the best links below to help you get the right information fast.  Simply click on one now.

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