After several years of diligently saving money, I’m nearly ready to purchase my first home. Because I’ve been thinking about buying a home for so long, I know exactly what I want my house to look like. I desire a place that has three bedrooms and three bathrooms. I also need a quiet space to set up my home office in. I want a massive, walk-in closet in my master bedroom. My master bathroom needs to have double vanities, a tiled, walk-in shower, and a Jacuzzi tub. On this blog, I hope you will discover how to set priorities during your new home search. Enjoy!
A New Home Search
Have Bad Credit? Strategies to Consider if You Want to Buy a House
Elli Jokela
A person's credit is something lenders use to base their decisions on whether or not to approve loans and having bad credit can make it difficult to buy a house. With bad credit, you may face more challenges buying a house, but it is still possible for you to buy a house. In fact, here are three different strategies you could consider using if you have bad credit but really want to become a homeowner.
Choose a low-cost home
If you are able to choose a low-cost home and the right type of loan program, you might be able to qualify for a loan, especially if you save up some money to use as a down payment. To use this strategy, you may want to consider starting with a mobile home or a small fixer-upper house. Both of these choices in homes are less expensive to purchase, and you might have an easier time qualifying for a loan if you choose a house like this.
Buy a home on contract
The second strategy to consider is buying a house on contract. This is also called leasing to own a house, and it is an ideal strategy for people with bad credit. With this option, you become a homeowner without getting a loan. Instead, the seller of the house becomes the lender in this scenario, and you will pay him or her for the loan. Within five years or so, you will be required to get a loan to pay the balance off in full. The benefit of this is that you have five years or longer to work on improving your credit, all while you are living in the house you are buying.
Get a cosigner to help you get a loan
The other choice you have is to get a cosigner for your loan. With a cosigner, a lender bases the decision not only on your credit but also on the credit of the person cosigning. This is a great way to buy a house if you have someone in your life that would be willing to do this for you as long as he or she has good credit.
These are three methods you could consider using to buy a house if you have bad credit, but there are other options too. A good place to start is by contacting a real estate agent to ask for help and advice on getting a single family home for sale.
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