Buying a House with
It happens to many of us. Obligations. Debts. Monthly bills. They all can combine to get the best of you and as a result, credit problems arise. In the not too distant past, this often meant having to wait 5 years, 10 years or more before attempting to purchase a home. Now, however, there are sources that can help those who are doing their best to re-establish a solid credit rating.
Overcoming Credit Problems
- 1. Determine precisely what the problems are. You will need to have a clear picture of your current credit status so that you know what to concentrate on. The quickest and easiest way to accomplish this is to run a credit check and begin to analyze it.
- 2. Start by getting the problems under control now. Do not incur any new debt. Do your best to begin to live within your means. This will be an advantage now, when you are applying for a loan, as well as later, when you will need to meet your monthly mortgage obligation.
- 3. Make a a commitment to a program of saving. Even if you have had credit problems, there are options available for mortgages if you have down payment money available. There is little or no hope if you have both credit problems and no cash.
- 4. Concentrate on your needs in housing before your wants. Re-establishing your financial footing is not as difficult as it used to be, but it is impossible if you attempt to buy more house than makes sense. Be conservative!
- 5. Concentrate on those lenders who specialize in working with those who have had credit problems. Spending time (and money) applying to lenders who do not work with credit blemishes will accomplish nothing. If you have a local source that you know will consider such loans, take advantage of them.