Getting a Home Loan

In some instances, one's credit rating can be so poor to the extent that getting a home loan is simply impossible. Even for those that are 'allowed', home loans for individuals with bad credit do not provide favourable interest rates and see people penalised for their previous misdemeanour's when paying debts.

As with Getting a Personal Loan, here is a step-by-step account of how to go about getting a Home Loan:

1) Check your credit score.
- Below 620 - Very poor
- 620 - 680 - Indifferent

It is conceivable that you would be able to get a Home Loan with a credit rating in the 620 - 680 range, though the following section will advise on how to improve this rating.

2) Take the time pay off existing credit card debts and change all accounts in your possession to 'current'. This should help improve your credit score, which, in turn, should help you qualify for more favourable interest rates.

3) Budget. List down all the incomings, all the outgoings in your existing situation and work out how much you can afford to allocate to a mortgage. You may have existing that are taking a significant proportion of your incomings; in which case, delay having a home loan under you've met your existing liabilities.

4) Try and raise as much as you can for your down-payment. In the eyes of the lender, the amount you use as a down payment will indicate your level of financial responsibility. The larger the down payment, the more favourable the interest rates.

5) Try and get someone else to sign the loan. Assuming they have a respectable credit rating, this will go some way to offsetting your own situation and would see the lender view your application more favourably.

6) Ensure you get a fixed rate mortgage. This will ensure there is no unexpected occurrences further down the line when interest rates change etc and you are able to plan your finances long-term.

Refinance with Bad Credit