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Posted on 9 January 2020 | 18,874 views

How to get Approved for a Bad Credit Home Loan

Because many lenders follow a set of approval criteria for borrowers, it’s not easy to borrow money for a home loan when you have bad credit. However, there are some important things you need to follow to get bad credit home loans.

You should understand that banks or lenders favor borrowers with stable income — stress it to your lender that you have job stability to qualify for the finance. If you are working in an industry — emphasize your tenure of employment to your lender, substantiate it with proper documentation like salary slip and employment experience certificate and if you have received annual merit-pay hike recently, mention it in your application form. Things like this collectively help offset bad credit.

If you live in a rented house or apartment, tell your lender that you have been regular rent payer to your landlord. Substantiate this with proper documentation including those bearing signature of your landlord. This will help your lender understand about your consistency in making payment against dues and liabilities.

If you are not aware what your credit score is, you should study it carefully — it will help you understand true picture of your financial status. Knowing your credit score will help you understand whether or not you can qualify for the mortgage. If your credit score is low, expect to obtain your home loan at higher interest rate.

Most lenders become skeptical at borrowers with very poor bad credit. In that case, logically explain to your lender that your bad credit is the thing of past. If your saving habit is impressive, it would be saving grace for your bad credit. Prove with sufficient documents to your lender about your saving habits. Your saving account will be very helpful for you to obtain a bad credit home loan.

Do not tell your lender that the home you wish to finance will be used for temporary stay. It will make your lender being skeptical on your credit worthiness. Probably, your motive will prompt the lender charge higher interest on housing finance, or your home loan application may be rejected.

To get bad credit home loan, you should increase your down payment by 10% of the entire loan — the larger it is, the quicker you will receive an approval.

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  • Jessica Johnson said:

    How to get Approved for a Bad Credit Home Loan – http://t.co/XiK3T46S

  • Jessica Johnson said:

    RT @pdxpixels: How to get Approved for a Bad Credit Home Loan #Bad Credit History #Bad Credit Home Loans #Bad Credit http://t.co/x2rrxr2y

  • Annetta Powell said:

    The best way to deal with getting approval for home loans when you have bad credit is increasing the down payment. But in most cases when it comes to the individuals with bad credits, they can’t either afford a good percentage of the down payment.
    Annetta Powell recently posted..Organo Gold Scam: Top Twelve AllegationsMy Profile

  • Annetta Powell said:

    RT @pdxpixels: How to get Approved for a Bad Credit Home Loan #BadCredit http://t.co/IgvX1DFi

  • Justin@personal growth said:

    Sounds like a problem like many are facing at the moment. Many people have stable jobs yet they can’t pay their bills on time. It would be great if Lenders would voluntarily (without resistance) lower mortgage payments for people whose monthly mortgage payments are just too high for them.
    Justin@personal growth recently posted..Feeling Out of Sorts Lately – Try Doing Something New for 30 DaysMy Profile

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