Pittsfield, MA -- (SBWIRE) -- 03/19/2013 -- Real-estate-yogi.com understands the frustration that goes along with having bad credit and is here to offer some helpful advice, such as:
- Importance of the Credit Score
- Save for Down Payment
- Know Area Interest Rates
- Look into Federal Mortgage Plans
Credit Score Influence
When buying your first home with bad credit, one must understand the importance of his credit rating. The higher it is, the better the chances that he’ll find the financing he needs. The lower the score is, the more difficult his chances get. He should get a copy of his credit reports before he begins to look for a house so he knows exactly what his score is and can take steps to work within the boundaries that rating sets.
Gathering the Down Payment
Having bad credit makes it hard to obtain financing for anything. First time home buyers with bad credit have some hurdles that those with better credit scores don’t have, one of which is needing a larger down payment. It is wise for a person with poor credit to postpone his search for a home until he can save up enough money for a sizable deposit. This will go a long way toward getting a good mortgage with a reasonable interest rate.
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Be Aware of Interest Rates
Part of how to buy a first home with bad credit is knowing what the interest rates are in one’s area. Because of poor credit, expect to have to pay a higher rate. Charging higher interest gives the lender a sort of guarantee that he’ll make a profit on the loan. Be sure to check with several financers, as rates can vary from one to another and from city to city.
Federal Mortgage Programs
The Veteran’s Administration (VA) and the Federal Housing Authority (FHA) both have programs that provide loans that have less strict credit requirements. It may be easier for one to qualify for a VA or FHA mortgage when buying a house for the first time with bad credit. Work with the local housing authority to find other sources of mortgage help.
Real-estate-yogi.com is a no-cost consumer resource website located in Pittsfield, Massachusetts that connects folks who have questions about the real estate realm with the more than 260,000 professionals who specialize in it and can answer them. For a complimentary consultation, dial 1-800-987-1397.