Setabay Private Hard Money Lender: Arizona Home Loans: How to Buy a House with Bad Credit

If you have bad credit you may find it difficult to buy a home. By being proactive and taking certain steps to repair your credit, you can find Arizona home loans that will help make your dreams come true.

Bad credit can follow you around like a dark cloud. It can make getting a car loan, credit card, and even a job difficult. Bad credit can also become a vicious cycle. You need to repair your credit by making on time payments, not one will give you the opportunity to make on time payments so you bad credit stays bad. You may begin to feel that the situation is hopeless.

One way to help rebuild your credit is by purchasing a home and making on time mortgage payments. If you have bad credit this can seem like a pipe dream, but there are a variety of ways and programs to help borrowers with bad credit get Arizona home loans. Since the housing crisis of 2008 there has been a rumor that only borrowers with pristine credit can be approved for home loans. This is simply not true. With banks and lenders relaxing their credit requirements, more home loans are being approved at lower borrower credit scores. Some programs will even approve borrowers with a score as low as 500 as long as the borrower has some cash for a down payment.

If you have bad credit and are thinking about applying for Arizona home loans, there are a few steps you can take to help make sure that you will qualify. First, and most importantly, make all of your rent payments on time. 12 months of on time rent payments can help immensely when a lender is trying to decide if you are worth the risk in terms of a mortgage investment. In addition, start saving cash. Although credit scores are a piece of the mortgage approval puzzle, they are only a piece. Money talks, usually louder than credit alone. Having 6 months to a year of living expenses in the bank (including mortgage payments) will make it more likely that a lender will finance your mortgage. In addition, save up for a down payment. The higher down payment you can make on a property, the more likely you will be to get a loan, even with bad credit.

Finding a Arizona Mortgage Broker who is The Real Deal

Once you are ready to start the process of purchasing a home, it is important to find an Arizona mortgage broker who specializes in Arizona home loans for bad credit. A broker is different than a bank in that he is not tied to one lending source. A bank lends its own money and only has the programs and interest rates that it is approved for. A broker, can shop lenders to help find a variety of programs and interest rates. A bank works to make money for itself while a broker truly works to find the best deal for the borrower.

When you are looking for a broker, it is important to make sure you find one who is honest, knowledgeable, and aggressive. You should ask about licensing and experience. Make sure that your broker has experience with bad credit home loans and can clearly explain several current programs to you. Your broker should also be able to explain loan terms to you, including any fees and what your bottom line monthly payment will be. If there are any extra fees in the payment each month like insurance, your broker should be able to tell you why you are paying it, how long you will be paying it for, and if it will vary from month to month. This is very important because knowing what to expect each month will help you make on time payments and avoid any surprises.

Finding the right Arizona Mortgage Broker

can be the key to your home buying success.

Your Arizona mortgage broker should be there to fight for you. An aggressive Arizona mortgage broker can help convince a reluctant lender to take a second look at your mortgage application. Once your loan goes into underwriting, it may be automatically rejected by a computer program based on your credit score. Your mortgage broker can help convince the lender to look at your application manually and put more emphasis on the assets you have in the bank and your recent on time rent payments. Finding the right broker can help make your homeownership dreams come true and put you on the path towards rebuilding your credit. When you are ready to take the next steps, your first call should be to an Arizona mortgage broker.