Bad Credit Issues
Your credit is a critical part of getting approved for a mortgage. When you have bad credit you may have a harder time getting approved, and your interest rate may be higher than a person with stronger credit.
There are several things you can do if you have bad credit to get a better deal.
You can check your credit report and make sure there are no errors on it. There may be items listed as unpaid debts which have already been paid properly. These kinds of errors on your credit report can end up being very costly.
If you find errors on your credit report you can work directly with these creditors to fix these problems. When you have written verification that a debt has been resolved you can submit this information to the credit bureaus to have your credit score updated.
If you have lots of small bad debts on your credit report you should certainly move to try to clean this up. It will not cost you very much up front and save you a lot more over the long term.
There are many lenders who specialize in people with challenging credit situations.
Just because one mortgage lender rejects you doesn’t mean another will also do the same thing. Keep in mind that mortgage lenders often have very different loan approval policies from each other.
Many of these mortgage lenders may be able to approve you up to 100% cash out or 100% purchase financing.