Buying a home can be a very intense process, so having a solid team to help you move forward is very important. Finding the right home loan officer to add to the team is key to helping you buy your dream home. The right loan officer will start the process by educating you on what you need to know. From the various types of loans to any other programs that might help you, a loan officer should provide you with a list of options.

• · With changes to programs and regulations, an experienced loan officer will have a reputation for being knowledgeable and staying on top of updated guidelines.
• · An experienced officer may be able to share a network of buyers who might be interested in purchasing your home. The more prospects, the quicker your home will sell.
• · A reliable loan officer should be willing to answer any questions you may have during the home buying process.

You should get pre-approved for a mortgage loan before beginning your search for a house. Many home buyers get the process mixed up by selecting the home they want and then learn they are unable to afford it when they apply for a mortgage.

No. 2: Contact a mix of financial institutions. Interest rates fluctuate constantly for a variety of reasons, including the occasional promotion of a particular loan product by a financial institution.

For example, some lenders who are eager to generate more purchase loans might offer the best mortgage rates for homebuyers but not for refinancing homeowners.Sometimes a credit union or bank will introduce a new loan product and offer better mortgage rates in order to entice borrowers.

No. 3: Ask about fees. The variation in fees associated with a loan are one reason why you should not comparison shop solely based on the best advertised interest rate. Sometimes a mortgage at a lower advertised rate can end up costing you more because of all the fees associated with it.

No. 4: Consider whether you should pay points. One of the largest expenses can be the points attached to a particular loan. Each point is equal to one percent of your loan amount.

Plus, if you want to stay on firm financial footing in the future, you’ll also have to make a serious effort to improve your score. Get FHA Approval: Conventional home mortgages are not usually available to home buyers with credit problems because they present a higher risk for the lender.

However, the Federal Housing Administration (FHA) is a good resource for aspiring homeowners with low credit scores. The FHA do not lend money, but it does act as a form of insurance for lenders by providing a guarantee that it will pay your lender even if you default on your mortgage.

In a lender’s eyes, this approval reduces its risk of lending to someone with poor credit, and improves your odds of getting your mortgage application approved.However, being accepted into the FHA program is not a given, and even if you are approved, lenders are not required to give you a mortgage.

Also, in the case of a Chapter 7 bankruptcy or short sale, you may have to wait two years – and show improvements in your credit score before being approved by the FHA.

Find Alternative Lenders: Since the subprime meltdown, many of the lenders that cater to low-credit borrowers have gone out of business, but there are still some out there. You have to be very careful here, these kinds of lenders are in a prime position to take advantage of desperate borrowers. Be on alert and check out your lender’s reputation. You could also get in touch with a reputable mortgage broker who is licensed in your state. Unlike your local bank or credit union, brokers have access to countless lending resources and are often up to date on many of the programs available to low-credit lenders. If there’s a way to get a mortgage deal done with your credit, a mortgage broker is likely to find it.

CONTACT US FOR A LIST OF ALTERNATIVE LENDERS.

Credit Score Boost: If you have poor credit, one obvious way to improve your chances of getting a mortgage is to improve that score. This is a solution that takes longer, but even a small increase in your score can make a real difference. Order a copy of your credit score from all three bureaus–TransUnion, Experian and Equifax–and start looking for any inaccuracies. Disputing inaccurate information can give your score a significant boost almost immediately. You can do so by filling out a dispute form and sending it to each company. If you have more time, you can work on improving your credit score by ensuring that you pay down your overall debt and make all credit card and loan payments on time every month. You can check out other tactics for improving your credit on my link Credit Score Boost.

Make a Higher Down Payment: One thing that can make you a lower risk to a borrower is a big, fat down payment. If you have access to some cash, this can go a long way toward helping you secure a mortgage loan. After all, lenders need some assurance that they will get their money back. The more equity there is in the home you buy, the easier it is for them to do that. Plus, a higher down payment will mean that you do not have to pay private mortgage insurance, which is required of homeowners who put down less than 20 percent of the cost of the home. You can accept down payment money from family or friends, but it must be a gift, not a loan, and you will need a “down payment gift letter” to prove it.

Find a Co-Signer If you can find someone to co-sign for your loan, you could avoid a bad credit mortgage altogether. Keep in mind, however, that this agreement means that you will be putting a family member or friend on the hook for your debt. If you default, both you and your co-signer will suffer the consequences. The best way to get a mortgage after you have some damage to your credit is to wait until your score improves. This ensures that you will get the best possible interest rate on your mortgage, and it will help you avoid the predatory lenders that tend to take advantage of borrowers with poor credit.