Home Loans for People with Bad Credit

Home Loans Bad Credit

Buying a new home is one of the biggest decisions, one of the most substantial committments, and one of largest financial responsibilities most of us will take on in our lifetime. It's also one of the greatest thrills and a can provide a great source of pride, knowing that you own your own home.

But what if you have bad or very bad credit? Is a bad credit home loan out of reach?

Especially after the subprime mortgage crisis, many people believe that home loans for people with bad credit are now out of reach.  But fear not.  Bad credit, by itself, will not necessarily exclude you from buying the home of your dreams.  The loan process may be a bit more challenging, you'll probably end up with a higher monthly payment than you'd hope for, but if there is a will, there is a way.

Before applying for a home loan, bad credit or not, you should make sure your both your current credit and financial situations are stable.  You should get a free copy of your credit report and do everything in your power to repair your credit as much as possible and make sure all your current bills and financial obligations are current and up to date.

Next, you should determine how much you can afford for a monthly payment.  This will involve some thoughtful calcuations on your part.  Once you have determined the maximum amount you think you can afford, you should accumulate documentation showing that your current income will cover the mortgage plus any current financial obligations you have.

If you are sure you can afford the mortgage and can you can prove it (by providing proof of employment, pay stubs, and documentation of other income), chances are even if you have bad or very bad credit, you will be able to find a company that specializes in home loans for people with bad credit that will approve your loan.

With over 100 million Americans with debt problems, you better believe there are many companies that specialize directly in providing home loans for people with bad credit.  These companies work with people with bad or very bad credit everyday.  If you can show these companies that your past credit issues are just that - in the past - and convince them that you can afford a new mortgage, chances are very good that your loan will be approved. There are many bad credit home loan companies out there.  Do your research, don't be afraid to give them a call directly to discuss your situation, and go out there and get the house of your dreams!