New homebuyers with poor credit or no credit can find buying a condo or house challenging. Are you in this situation right now? This does not always mean you have to live with high interest rates or continue renting. Many lenders specialize in loans to first time buyers with bad credit or no credit.
Due to unpaid bills or high credit card balances, you may have a credit score that is less than perfect. The mortgage lender who is considering your application will also look for reasons why you have a poor credit score.
If some of your bad credit issues are several years old, it may still it may still be reflected on your credit report. If the lender asks about past due accounts or debts during your application process, be certain to answer them honestly.
In case your application is denied due to bad credit, the lender must share the reasons why you have been denied. Typically you will be sent a formal letter giving this information. When this letter is sent to the borrower, the borrower is then able to obtain a complimentary credit report. There can be mistakes on a credit report, so be certain to address any discrepancies immediately.
Keep in mind as a first time buyer that there are special first time loans offered by both lenders and the government. There are many government loan applications available to assist you in becoming a first time homebuyer, without suffering due to high interest rates. Many local housing government agencies can give you the information you need to begin filling out mortgage applications.
One important step to take as a first time buyer, especially a buyer with poor credit, is to research the current interest rates and the different mortgage options available including no interest loans and adjustable rate loans. Be sure to examine your credit report before starting.This article is available for re-use on any website. Please read the full details of our content sharing arrangement before placing this article on your site. Here is the disclaimer & link text we require at the bottom of each page where this article is used: