Many borrowers face this dilemma...they want to buy a home, but don't have the best credit. If you have bad credit and worry that you'll face a loan denial when applying for a mortgage, don't be overly concerned. You can still secure a mortgage with a low credit score. It'll just come at a higher cost, and you'll need to deliver a justification of your low credit score.

Having bad credit is can be an obstacle but not a complete deal breaker. It still may be achievable for lenders to provide you a loan, given your credit score is not too low. It is necessary to be aware that you most likely will pay a higher interest rate and more fees since you are more likely to default. Therefore, it's in your best interest to recuperate your credit score in order to get a lower interest rate. This will ultimately save you thousands in the long run.

As Mortgage lenders we look at the "age," dollar amount, and payment history of your distinctive credit lines. That means opening accounts habitually, running up your balances, and paying late or not at all can impact your credit score negatively. Altering one of these components of your spending behavior can positively affect your credit score.

There are numerous ways you can improve your credit score:1.Paying down your debts2.Paying your bills on time3.Disputing possible errors on your credit report.

The things you want to AVOID are:1.Don't close an account to remove it from your report 2.Don't open too many credit accounts in a short period of time3.Don't take an overly extended amount of time to shop around for interest rates. Lenders must pull your credit report every time you apply for credit.

Even after you reverse your negative credit history, you will still need to tell a prospective lender that there may be some signs of bad credit in your report. Taking this proactive step will save you time. This will give us as lenders more perspective when searching for the best loan that fits your needs.If bad credit continues to be an unresolvable issue for you.... FHA loan programs may be your best option. These federally insured loans have been an option since 1934. Remember that finding a loan with bad credit is not impossibility. It means that you must put in some extra work and be proactive.