After the recent financial upheaval, when people are under knee-deep debt, and have poor credit score, they often wonder “mortgage how much can I borrow”. To find that out, use a mortgage calculator and calculate how much mortgage you can acquire with poor credit score. In earlier times, people would believe that obtaining home mortgage with bad credit is a difficult task, but it is easy by following a few simple tips. On the contrary to many people’s beliefs, bad credit does not mean an end to all the options of getting a home mortgage loan. So let us take a close look at how to obtain a home mortgage loan with poor credit.
A few important tips to follow
- The initial step to acquire a home mortgage with bad credit should be to create a budget plan in order to see how much money you can afford to make on your monthly mortgage payment. Ideally, your mortgage payment should not exceed 29 percent of your total monthly income. When you calculate your payment, include amounts held in escrow to cover taxes and insurance. May be your mortgage lender will help you calculate the escrow amount. If not, get estimates on your local taxes from your municipal and state government agencies. You can also get an estimate from an insurance company or from an escrow calculator.
- While making a budget, if you see your expenses are higher than your income, take necessary steps to increase your cash flow. Remember, debt-to-income ratio plays an important role while getting approval for a home mortgage loan.
- Obtain a secured credit card to refurbish your credit rating. This is type of credit card is mainly designed for people who have bad credit. The deposit amount in this card is held as collateral against the amount charged on the card. So use the card and make payment on time to repair your credit score.
- Consider buying an existing house rather than a new house since the cost of the former is much less than the cost of the latter. Hence, you can save a good amount both on the principal and interest of the loan.
- Go through the websites of Federal Housing Administration (FHA) and Veterans Administration (VA) to see if you are eligible for these kinds of home mortgage loans. While FHA lends home mortgage loans to people who otherwise cannot qualify for the loan, VA lends home mortgage loans to veterans who meet certain eligibility criteria.
- However, if you cannot qualify for FHA or VA loan, contact credible lenders, such as ELoan and Lending Tree. Go through comparison sites who can help you find a mortgage lender willing to work with you. Then fill out the forms accurately, providing all the financial information.
In conclusion, if you have a poor credit score and want to obtain a home mortgage loan, bear the above mentioned tips in mind.I make a full time income blogging from home I would like to offer you the option to do the same. Click Here to use the blogging system I used to make over $30,000 dollars alternatively you can go here and get Two Free Websites 100% FREE and start your own Blog/Website today with training inclusive. Please see our income disclaimer and my results may not be typical as I am not typical 🙂 Click Here For My Proof Of Earnings Video