There are just a few things in life that, when we do them for the first time, we know that we’ll hold onto that memory in our hearts and minds forever. For most of us, these include the first time we ride a bicycle, our first kiss, and buying our first home.
If you have not yet had the pleasure of buying a home for the first time, you are no doubt anxious to get busy making that memory for yourself and your loved ones. If you have already made the decision to purchase a home, there is probably not much that can keep you from moving forward with all of your energy to make it happen.
Of course, if your credit score is rated in the fair or poor category by mortgage lenders, your score actually could be holding you back. Luckily, as a first time home buyer, you have a number of options for getting yourself into a home, even with a bad credit score.
To improve your chances of getting a low interest rate on your loan, here are 3 tips for finding first time home loans for bad credit home buyers:
1. Take courage in knowing that the prize is worth the struggle:
As with anything in life worth doing, the going will sometimes be tough when it comes to taking out a first time home loan when you have a bad credit score. But, remember how valuable the prize that you are going after is: a place to call your own, a built-in long-term investment vehicle for yourself, and the pride of home ownership.
2. Make your journey easier by seeking out bad credit lenders:
Moreover, the journey does not have to be so hard, even if your credit score is under 600. You will increase your chances of loan acceptance simply by choosing to only apply to lenders who specialize in working with bad credit borrowers. Build yourself a candidate lender list of at least 5-10 “bad credit mortgage lenders.”
3. Combine FHA and non-FHA lenders in your candidate lender list:
Important: since you are a first time home buyer and are a U.S. resident, make sure that you check out the FHA’s first time home buyer program. They can make it easier for you to qualify for a loan. At the same time, do not limit yourself to only working with FHA lenders: build into your candidate lender list both FHA and non-FHA lenders in order to increase your chances of finding the right loan.