How to Apply for a Mortgage with Bad Credit - The Bills.com Blog

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How to Apply for a Mortgage with Bad Credit

Question: Can you still get a home with bad credit? How high would your interest rate be? Should you try to get approved for a mortgage loan before or after trying to clear up bad credit?

Answer: Thank you for visiting Bills.com. Here is an answer to your question - which I think I can help you with.

Credit rating is one factor in making a loan decision. Given yourbad credit status, which is most likely reflected by late payments or maxed out account trade lines on your credit report, it will be more challenging to get approved for a loan. But... there is hope. You can contact your creditors and ask them to "re-age" your accounts and/or you can try to improve your credit by paying down or off credit card accounts and getting inaccurate marks removed.

Keep in mind, however, that if you have accumulated equity or

have a sizable down payment, that could provide the cushion in an LTV (loan-to-value) calculation to get your approved. Your debt to income ratio will also be very important, particularly if you have bad credit.
Most of all, it cannot hurt to apply and see what lenders think of your own situation.

Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan form

page and find a loan that meets your needs.

I hope that his helps you make the right decision for your particular situation, but be sure to shop around and find a loan that meets your needs.

If you would like more information, please visit our mortgage resource page.


We hope that this helped you to Find, Learn, and Save!

Best,
Bill
www.bills.com

Also, make sure to get a free financial health check-up with Bills IQ!

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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!

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