How To Get A Mortgage Loan With Low Credit Score

A bad credit score cannot deter you from getting a mortgage. There are many lenders that offer mortgage for bad credit score

so that they can fulfill their financial needs. Moreover, even the government has come up with some mortgage programs for

borrowers with low credit score. Discussed below are a few steps which when taken care of can increase the chances of getting

a mortgage loan with low credit score:

The first step to get started with is to get a copy of your credit report and determine whether or not it contains only the right

information. According to the Fair Credit Reporting Act, each one of you can demand for a free copy of your credit report from

any of the three major credit bureaus namely Trans Union, Equifax and Experian. After scrutinizing the report if you find that it

contains any disputed information, you can request the bureau and get it corrected then and there. This can greatly improve

your chances of qualifying for a home loan.

The next step is to ensure that you submit true and updated information about your financial status. It is necessary to

understand that the poor credit rating could be a result of either loss of job, divorce or death. However, meanwhile you may

have succeeded in saving a good amount or acquiring a new job. As these factors have a direct impact on your credit score it is

essential to report them to the credit bureau and increase your odds of getting your loan approved.

In addition to this, you need to make efforts towards consolidating your debts and paying off of your loan balances in order to

keep your debt-to-income ratio at a minimal level. This will give the lenders the notion that you are a good borrower and can

handle the finances sensibly. Think on other available options and try to choose a program which will save you a lot of money

on the interest and down payments. Thinking on government backed loans like FHA loans is a very good alternative for bad

credit borrowers as there are little or no credit restrictions.

Thus, with little help and some extra effort, borrowers with poor credit history can reasonably qualify for a home loan.

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