You Can Buy a House With Bad Credit If You Follow These Three Easy
How To Buy a Home With Bad Credit
The economy is still in a topsy turvy mode and more Americans than ever are concerned about buying a home with bad
credit after coming through the economic fallout aftermath.
Many believe, (and falsely I might add) that their dream of owning a home won’t happen because they have bad
If that's I’ve got some good news for you; even if you have a bankruptcy, foreclosure, repossession or otherwise
slapped with bad credit, you can still own a home!
Someone once said, “Where there is a will there is a way.” When it comes to the American dream of owning a home,
most Americans believe that dream will evade them once they end up in a situation with bad credit. If you have
experienced a foreclosure, repossession, bankruptcy or some other situation that has brought your credit score to
620 lower, you can still buy a home. Let's examine the three steps you are going to have to take in order to land
your dream home with bad credit.
Buy a House With Bad Credit Step #1
Think outside of the box
Most people, when they think about buying a home, the first thing that comes to their mind is filling out a
mortgage loan application and crossing their fingers waiting to find out if they are declined or approved. That
system has been so ingrained in the American psyche, that the average home buyer has no knowledge of the other
methods of buying a home. Consequently, if they ever experience an economic bump in the road it’s as almost if
their dream of owning a home is forever washed out.
Let's face it, in our society things happen! Companies go bankrupt, companies go out of business, we have
hurricane Katrina's, people lose it all to con artists like Bernie Madoff, people are overcome with medical bills
and the list of things that can happen goes on and on. To put it succinctly, bad things happen to good people; when
they do should these good people give up their dreams of owning a home? A millions times, “NO!”
The first step to buying a home when your credit score is not up to par, is thinking outside of the box. That
simply means coming to the realization that applying for a mortgage is not the only path to buying a home. As soon
as you grasp that fact, you will be well on your way into realizing your dream. Actually, the other home buying
options are less expensive and involve fewer hassles than going the mortgage loan application route. That brings me
to step number two.
Buy a House With Bad Credit Step #2
Know and Examine All of Your Home Buying Options
Now that you're thinking outside of the box, let's take a look at some of the more common ways people have been
buying homes when their credit score is shredded to pieces. There is: rent to own, rent with an option to buy,
lease to own, lease with an option to buy, private owner financing and of course bad credit financing. With the
exception of bad credit financing, all of the other options afford you the opportunity of dealing directly with the
owner of the property.
That means you eliminate loan processors, credit scores and loan approval committees. It also means you can get
a yea or nay right then and in there. So in essence you accomplish the same result without going through the hassle
of putting in a loan application and going through that entire time consuming process. And just to be clear, these
options are not just for people with credit issues. People with great credit buy homes through private investors
and private lenders every day!
Another key issue you need to be made aware of is that there is a mass number of homes on the market being sold
through these secondary options. Plus, even if a homeowner has a house for sale and is requesting that the
potential home buyer qualifies for a conventional loan doesn’t that they won’t accept an offer to do private
financing. The key is, you won’t know unless you put an offer in! REMEMBER: always think outside of the box!
Buy a House With Bad Credit Step #3
Start Working On Your Improving Your Credit
Whichever alternative home buying option you decide to take, it is vitally important that
you work towards improving your credit score. I say that because your credit score impacts you in virtually every
facet of life.
In some states, banks won’t allow you to open up a checking account if your credit score doesn’t meet certain
parameters. By addressing the issue now, you can move towards having a respectable score and potentially negotiate
a better rate with your improved credit score. If you take those three steps, buying a home with bad credit
will be cinch!
Author, Joel Marks of REODr.com