Bad Credit Loan: Just Follow The Steps And Qualify Yourself For A Zero Down Mortgage Loan |
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Everyone wants to own a home and those with credit problems are calling every mortgage bad credit loan company in the phone book and applying on every mortgage website out there. (And there are many out there). Only to find out later that every time a mortgage bad credit loan company pulls their credit, their credit score dropped a few points, or that the particular lender does not originate the type of loan that you need. That can be frustrating. Many people think they won't qualify for a zero-down payment mortgage bad credit loan, but many people don't know how to qualify for a zero-down mortgage bad credit loan. Many of the clients that experts deal with have great credit and have no problem getting a loan, but then there are those with credit problems. Expert will show you how to qualify for a mortgage bad credit loan with zero down payment and closing costs (if any) of less than $1,000. The first thing you should consider before applying for a zero-down bad credit loan is your Tri-merge credit score, which you can pull on yourself. A tri-merged credit report pulls your credit profiles from the 3 major credit-reporting companies and merges it into 1 report. The nice thing about pulling your credit yourself is that it will not affect your credit score. What is your credit score? Most mortgage bad credit loan lenders will use the middle of the three scores. Example: Your credit scores are 576, 525, 599. In this case you would use the 576 credit score since it is the middle score. Is your middle credit score at least 575? If so, congratulations: move on to the next step. If your middle score is less than 575, you have some homework. You can either sign up with a credit repair company to try to remove some derogatory items on your credit, which will raise your credit score, or you can try to acquire some credit to help reestablish your creditworthiness. The easiest way to reestablish your credit is by either getting a bad credit loan or a credit card designed to help reestablish your credit. If you are applying for a zero-down payment bad credit loan, you will need to document 24 months of recent mortgage or rental history. If you rent from a property management company, the loan officer will need verification of rent, supplied by your mortgage lender or broker. If you rent from a private landlord, you will need 24 months of cancelled checks or money order receipts with no payments over 30 days late. But if you are unable to document your rental history there is a way around it. Get your credit report and look for the following: Do you have an active credit line on your credit report that has been open for at least 24 months? Has this credit line had any activity in the last 6 months? Well, congrats! You made it this far which means that your credit might qualify for a zero-down payment bad credit loan. There are many more factors to determine so discuss details with a qualified mortgage professional. First, contact a few bad credit mortgage companies to inquire whether they have zero-down loan programs for your credit score is. Remember, you will need at least a 575 credit score to qualify for this particular bad credit loan program. Also, to minimize your out-of-pocket expenses, ask your mortgage professional if the property seller can pay 6% of the purchase price toward closing costs. If so, remember to negotiate that into your purchase contract when you make an offer on a house. |
