Buying a House With Bad Credit Can Be Financial Suicide
Buying a house today seems like a good idea You get to move in now.
Its exciting.
The house you are thinking about buying is shiny and freshly painted.
The landscaping looks great.
Your family wants to help you move in.
Your spouse and children are excited.
Anything seems possible.
Buying a house with bad credit is asking for trouble When you have bad credit, nobody will lend you any money to buy a house.
Or if they will, they will force you into one of two situations:
The second scenario describes sub-prime loans and rent-to-own schemes again (when you still can't get qualified when your option is about to expire).
You're not alone If you define bad credit as not being able to qualify for a good home loan, then the ranks of people with "bad credit" has swelled in the past couple of years.
For many, it wasn't even their fault.
Credit card companies lowered credit limits without warning or reason.
Have lower available credit reduces your credit score.
The reason the housing market is so terrible right now is not because there aren't any people who would like to buy the homes, its because there aren't any people who can qualify to buy the homes.
There is a solution For most people, buying a house with a good, safe, government insured loan is not as far away as they think.
If they take the right actions now to get their credit in order, it could take anywhere from a few months to a year or more.
The hard part is knowing what the "right actions" are.
The right actions for most people are usually a combination of disputing items on your credit report, negotiating settlements for past due balances, not buying anything new on credit, and establishing positive trade lines.
It can be helpful to have a professional do the detail work of credit repair for you.
You can do it yourself, but it can be tedious and hard to understand.
If your goal is to buy a home, there is only one company that is specifically designed to repair credit to government loan standards (a government insured loan is the best loan on the market).
Its exciting.
The house you are thinking about buying is shiny and freshly painted.
The landscaping looks great.
Your family wants to help you move in.
Your spouse and children are excited.
Anything seems possible.
Buying a house with bad credit is asking for trouble When you have bad credit, nobody will lend you any money to buy a house.
Or if they will, they will force you into one of two situations:
- They charge you a boatload of money up front
- They set you up for failure later
The second scenario describes sub-prime loans and rent-to-own schemes again (when you still can't get qualified when your option is about to expire).
You're not alone If you define bad credit as not being able to qualify for a good home loan, then the ranks of people with "bad credit" has swelled in the past couple of years.
For many, it wasn't even their fault.
Credit card companies lowered credit limits without warning or reason.
Have lower available credit reduces your credit score.
The reason the housing market is so terrible right now is not because there aren't any people who would like to buy the homes, its because there aren't any people who can qualify to buy the homes.
There is a solution For most people, buying a house with a good, safe, government insured loan is not as far away as they think.
If they take the right actions now to get their credit in order, it could take anywhere from a few months to a year or more.
The hard part is knowing what the "right actions" are.
The right actions for most people are usually a combination of disputing items on your credit report, negotiating settlements for past due balances, not buying anything new on credit, and establishing positive trade lines.
It can be helpful to have a professional do the detail work of credit repair for you.
You can do it yourself, but it can be tedious and hard to understand.
If your goal is to buy a home, there is only one company that is specifically designed to repair credit to government loan standards (a government insured loan is the best loan on the market).
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