| There are any number of reasons that you | | | | go straight to the source. Many homeowners |
| could end up with poor credit and not all of | | | | are willing to sell you a home under a |
| them come from being lazy or cheap. A bad | | | | selling finance agreement. This agreement |
| accident or illness, hospitalization, the | | | | provides a "contract" that allows you to make |
| loss of a job or bad choices in a your | | | | payments to the actual seller instead of |
| younger years could all be the basis for | | | | making payments to a bank. |
| having bad credit in your adult years. The | | | | |
| events might have happened years ago and the | | | | Another option when buying through a seller, |
| you may have since repaired their ailing | | | | especially if a down payment is not an |
| credit; however that stain remains and makes | | | | option, is to find a seller that is offering |
| future purchases difficult. Now that you're | | | | a lease-to-buy option. When you do a lease |
| older and wiser you find that you want a new | | | | option, you will have to work out the math |
| home. Can you buy a new home with your bad | | | | ahead of time to determine how much rent is |
| credit? | | | | going for a down payment, and after a certain |
| | | | period of time, how much credit you are going |
| The easiest way to own a home with poor | | | | to end up with. |
| credit is to try your best to get your credit | | | | |
| back on track. If you can pay 2% less on the | | | | You can dramatically raise your credit score |
| mortgage loan interest rate, you will be | | | | by owning a home and making timely payments. |
| saving over $70,000 throughout the years. | | | | Eventually there will come a time come when |
| | | | you want to refinance your house. Doing this |
| The first thing is to order a free credit | | | | can lower your payments and a good credit |
| report and to go over it with a fine tooth | | | | rating can improve your chances more than |
| comb. If you find any disputes that you want | | | | 95%. This might enable you to make some money |
| to take up with creditors, dig up your | | | | too and pay off some other debts. Most |
| receipts, and write some letters trying to | | | | homeowners will refinance the house to do |
| straighten out whatever is being falsely | | | | exactly that. On the other hand, owning a |
| claimed. The law states that the credit | | | | home while you have a low credit score might |
| agency will have to address the dispute | | | | make your interest rates a little higher than |
| within 14 days or they will have to remove | | | | most. |
| the disputed item completely. | | | | |
| | | | Becoming a homeowner is a gratifying |
| After all of your disputes have been settled, | | | | decision, but it can also be a taxing one. |
| you should insist that there be a new (and | | | | Make sure that you don't become overzealous |
| corrected) report sent out to all of the | | | | when trying to pick out a house to purchase. |
| creditors who have received your report in | | | | Don't try to live beyond your means, |
| the last six months. The process of having | | | | especially when your credit is less than |
| the corrections sent out is laborious, but it | | | | ideal. Buy a house that is big enough for |
| could mean a greater chance of you owning | | | | what you need, but cost efficient enough that |
| your own home, so be persistent. | | | | you don't find yourself in greater financial |
| | | | strain. |
| One way to own a home with bad credit is to | | | | |