Buying a house is the American dream. A house buyer has to often jump through quite a few hoops to achieve this dream. If you’re a first time home buyer, you may be wondering how to go about buying a house without bad credit.
First of all, many lenders require a credit check before giving you any money for a loan. This is a good thing if you want to go about buying your first home without risking your credit but it does present a challenge if you don’t have much to offer them.
Second, you can find financing through some lenders that do not require a credit check on their borrowers. The key here is that you are able to take out a smaller loan than you would from a bank or other lender that requires a credit check. In order to be eligible for this type of loan, you must have a steady source of income and you must be able to provide the lender with a detailed financial statement as well.
Third, it is possible to purchase your first home without a mortgage even if you have no credit. Mortgage lending companies will allow you to apply for a cash advance with a cosigner so that you can use their credit card to pay for the down payment on your home.
In order to qualify for this type of loan, you will need to have a stable source of income, be at least twenty-five years old and be employed in a job that pays at least two hundred hours per year. Once you have completed the application process and have been approved, the mortgage company will transfer your balance to the equity in your home so that you can own your new home.
No matter which method you choose to purchase your home, there is help available. There are lenders who specialize in helping people buy homes with bad credit and there are even programs that will let you use your tax returns to purchase your new home.
When you’re ready to take that next step in purchasing your new home, take a look around online and see if you can find a lender who specializes in helping you get your credit back on track. Many lenders will give you a quote for their services without requiring a credit check on their clients so that you can compare them without having to risk your credit.
One of the most important things you can do when you’re looking for a place to buy a home without bad credit is to shop around. While it may be tempting to go right off and purchase a home right away, you have to realize that this is probably one of the worst decisions you will make as a home buyer.
Even though there are many options, the real estate market is a volatile and fluctuating market so you have to have a little patience. In the long run, this will pay off in a big way in a bigger profits and lower down payments for you in the long run.