Can You Buy A Home With Low Credit ?

• posted by a human - Walter Seward - Agent with UFF

A low-credit loan is challenging, but you have more options than you think!

You are ready to buy a home. The process of buying a home can feel overwhelming, if you are not careful, one detail can and will derail your dream of home ownership before you even left the mortgage lender's office.

That detail is your credit score. This little number has a lot of influence in the home loan world, enough to make securing a mortgage with bad credit seem nearly impossible.

A little later in this article, we will show you a positive option.

If you're hoping to buy a house with bad credit, there are options to help you get there. So, keep reading as we explain the home buying process with a low credit score, and some steps you can take to improve your credit score.

Defining a "Bad Credit Score"

Let's say your credit score is around 620 - the minimum score for most home loans. You're in decent shape, right ?

It depends. If your lender is using FICO, you'll fall into the "fair" credit score range. BUT if your lender uses VantageScore, you're sitting right on the edge between "fair" and "poor".

Because your score is the main factor in your loan determination you'll want to verify which model the bank is using. The difference could mean thousands more (or less) on your loan payment.

Be sure to check for errors in your credit score.

It's Not Just About Your Score.

If your credit score is in the 300 - 550 range, you might assume you have a poor or bad credit. While this makes sense in terms of your FICO or VantageScore determination, you're NOT getting the full story.

The trouble is, your lender decides what a bad credit score is. And the loan they offer you will depend on several other factors:

• How much cash you have for a down payment

• Your overall amount of outstanding debt

• Your income

• Any debts you have in collections

These factors will vary by lender, so, if you have a low credit score be sure to do some research before making a final decision.

Improving Your Credit Score

Improving your credit score isn't the solution you want to hear, and it won't probably be easy. Still, improving your score just slightly could save you thousands in the long run.

Reduce Your Credit Utilization

After payment history, your credit utilization is the second most important factor in your credit score. It takes your credit limit and credit balance into account. So, let's say your credit limit is $15,000. If you've spent $7,500 your credit utilization will be 50%.

Ideally your credit utilization percentage will be below 30%. If you want to give yourself more room, you can ask the bank for a limited increase to reduce your percentage. This process typically takes just a few minutes.

From there, you can work on shaving that number down to 10% - the ideal percentage for improving your credit score.

Debt Collection and Deletions:

Remember the importance of your payment history?

Debts that are in collection can have a serious impact on your credit score, along with losing cash on repossessed items.

Still, if you're in this type of situation you have the rights that the debt collector must respect: start by understanding what the repossession company can and cannot do.

Consolidate Your Debts, But beware!

Debt consolidation loans can help improve your credit score, but the bank won't make things easy.

That's why United Financial Freedom developed a better way to consolidate your debts. (more on this later)

Getting a Mortgage with Bad Credit. Shell out on your Down Payment.

If you have a bad credit, cash would be your best friend when it comes to getting a loan from the bank. While the lender might turn you down for a low credit score, if you're able to produce a large down payment, you may have a better chance of securing a loan.

The Nitty Gritty of Bad Credit

The truth is, when you're looking for a loan with a bad credit, the bank doesn't have your best interests in mind. They are out to make cash on your loan, and they'll only be looking at the numbers behind your name - your credit score and financial track record.

So, with a bad credit score your options are limited. When it comes to your average broker.

What If There Was ANOTHER Way?

Like I mentioned earlier, there is! And it can help you pay off your debts in less time without the hassle of going to a lender.

It is a financial tool made for everyday people by design, because it wasn't made by any greedy bank or lender.

It is called the Money Max Account, and it's the result of everyday guys working together to fight the thing they hate just as much as you do: DEBT.

Created by United Financial Freedom founded by Sklyer Witman and John Washenko, the Money Max Account can help you save time and money on your DEBT payments.

Think back to the importance of your payment history. Paying off debt on time means a better credit score, and less time paying off debts (with interest) means more money in your pocket.

And the Money Max Account is designed to help you pay off your DEBTS in record time! It can even help you pay off up to a 30 year mortgage in as little as 7 - 10 years!

Don't waste another day tracking every expense or increasing budgets to pay off your DEBTS. Let the Money Max Account do it for you!

It's a comprehensive account that can help you consolidating debts, track your expenses, and other factors that make up your credit score.

With the Money Max Account, you can spend less time paying off your DEBTS, and more time looking for a new home.

For more information on the history of United Financial Freedom and why the Money Max Account, please read the full story by requesting your copy of the ebook "Convert Your DEBT to Wealth"

text Walter Seward, YOUR email address to 517-477-0155 or email; 6m4cash@gmail.com requesting your copy of the ebook. Thank-You.