So many Americans have the dream of owning a home. It is after all, the American dream. Many have achieved this dream and others are yet to attain it. The rising emphasis for people to have good credit is quite the barrier for anyone who is aspiring to buy a house. Poor credit stops people dead in their tracks even when they can afford to make payments on the house. It is next to impossible to buy a home with poor credit. Your past financial mistakes come back to haunt you every time you are seeking credit for something and it can get really disappointing and annoying.
It is a shame when you can’t get a house just simply because of that one fact. Some end up giving up and opting to live in an apartment and others adamantly go ahead and get a high interest mortgage that ends up becoming financially unbearable.
Well, not all hope is lost. You can buy a home with poor credit if you follow these guidelines and you will be able to enjoy a house just like the next person. You deserve to live in a house, especially if you work hard for what you have.
Get your Credit score Report
Find out what your credit score is. That is the first stop if you want to buy a home with poor credit. You may be familiar with it from time to time, but you have to keep up with it because it does not constantly stay the same.
The three major Credit bureaus; Equifax, Trans union and Experian will be able to help you find out.
You can go to FICO.com and seek out your credit there. There is a fee you have to pay for attaining that record.
Request copies for your Credit Report
It is best to combat the whole process when you have tangible documents in which you can fully examine and comprehend so that you know what you need to do. You will be able to get them from all three Credit Bureaus if you last requested for the records more than a year ago.
Take at least half a year to improve Credit Score
Once you have analyzed each and every old debt, now you can get to work. Dispute all the ones you know do not apply and think about what you can do to minimize the ones that do. Look at the ones that have exceeded the statue of limitations and bring that to their attention so that they can correct it. This will put you on a path to buy a home with poor Credit.
There are also other things you can do to raise your credit score. They are:-
- Resist from using your credit card for unnecessary stuff. The amount you use in a month should be the amount that you pay off every 30 days.
- Adjust your financial budget so that you can find some money to pay off existing debt.
- Make sure that you pay your bills promptly and on time.
- Whatever you do, refrain from applying for additional credit card. One is enough for building up your credit.
- If you don’t have a credit card, apply for a SECURED one. This kind of credit card reports to the credit Bureaus on how well you are making payments. It is a great way to buy a home with poor Credit.
Consult a Lender
It may take a while before you see any changes on your credit, but it doesn’t hurt to meet with them so that you can get some advice on what ways you can use to improve your credit score. To buy a home with poor credit always turns out to be more expensive than anticipated anyway.
Your credit score should be all the way up to 660-700. To buy a home with poor credit is surely going to cost you, so you might as well try to fix your credit.
Always remember that this is a process that takes time. It is not going to happen overnight and you shall not see results until you really put some work into it.
Makes sure that you pay the debts you are able to pay so that it shows an improvement on your credit score. Budget and don’t overspend your money and also, make sure that you pay for your credit card what you use.
Don’t have a high expectation of the credit score improving drastically. This may be your only solution in how to buy a home with poor credit. Don’t get stuck on the notion that what worked for someone else, will work with you.
When looking up your credit score, keep in mind that it fluctuates. It will never stay the same.