If you have bad credit but you need to qualify for a mortgage loan, there are a few things you can do to make improvements – but they’re not necessarily quick fixes.
How to Improve Bad Credit to Get a Mortgage Loan
Whether you’re buying a home for sale in Tampa Bay or somewhere else (we’re a little partial to Tampa…), try these tips to boost your credit and qualify for better terms and interest rates.
#1: Talk to a lender that specializes in helping people with bad credit.
You may be able to qualify for special programs, particularly if you’re a first-time buyer. It never hurts to ask a lender’s opinion on building and repairing credit, either!
#2: Get a major credit card.
You may have to apply for a secured credit card at first (that’s when you give the creditor money to use as collateral in case you don’t pay your credit card bills). However, once you’ve established a good payment history, you may be able to apply for an unsecured credit card.
#3: Stick to your job.
When you have a regular wage or salary, and you’ve been with your employer for some time, lenders look at that favorably.
#4: Save at least 10% of a home’s purchase price for a down payment.
The more you can put down, the better. However, most lenders will want you to put down at least 10% if you’re working with bad credit.
What Do You Think?
Have you tried any of these tips, or do you have your own to share? We’d love to hear your stories, so please share them in the comments.