Tag Archives: fees

Home Loan With – For Bad Credit?

When a lender is considering a prospective client for a loan, it goes like this: What is the credit rating? What is the credit background? How much money do they have for a down payment?

Sure, a gigantically large deposit can help to cover a spotty payment history. However, you should be prepared for the absolute worst in fees and interest throughout the life of the loan.

In short there is no way around it. Even with a large deposit, you still need a supporting credit score and accompanying history to make home ownership a reality.

This was true before the credit crisis and now in the midst of many banks collapse, a good credit score and report is more vital than ever.

When someone asks about low scores and high down payments, I always want to know whether the client has done anything to try and improve their credit score. To the uninformed consumer your credit score can be a murky area.

With minimal effort you can obtain a copy of your report and see exactly what is there. Often, costly errors are the cause of low credit scores. Having cash on hand gives you the power to negotiate and settle your old debts. When you settle your debts, negotiation that in exchange for you payment the bad credit will be removed from your report.

If you don’t want to solve the errors your own, it might be wise to consider the help of a good credit attorney. For a low monthly fee and aggressive lawyer will tackle the problem of cleaning up your credit history and boosting your score.

Another fallacy is that it takes to long to clean up your credit. Nothing could be further from the truth!

It can take several months, to a year in the more severe cases, cleaning up a low credit score. Even in the worst cases of taking a year to turn yourself into a good credit risk you can save untold thousands in finance charges, fees and when you finance or borrow.

Therefore, if you have a large deposit and a low credit score, good! Turn your situation from good to great by taking some positive action today. The money you save will be worth it!