How To Buy A Home With Bad Credit By: Bryon Wenrich

Many people believe that they can't get a home if they have bad credit, but that just isn't true. Even if you have a bankruptcy, foreclosure or a low credit score - you, too, can own a home. While these negative items stay on your credit report for 7-10 years, you can do a lot to improve your credit score even before that time has passed. It's possible to qualify for a home mortgage within 3 years of a bankruptcy or bad credit event - if you play your cards right. The key to qualifying for a home mortgage is to clean up your credit. If you've had a specific event or even just a hard time paying your bills, you can start fresh anytime to improve your credit to qualify for a home mortgage.

1. Get a copy of your credit report. Before you can start working to improve your credit and qualify for a home mortgage, you need to know exactly what your credit report says. Be sure to get credit reports from all three bureaus, Equifax, Experian and TransUnion, so you can cover all your bases and make sure you clean up each of your credit reports.

Verify your personal information. If the personal information on your credit report is incorrect, you need to notify the credit bureaus and update your information. Make sure all your personal information is correct and up-to-date before you begin to worry about the other items on your credit report.

3. Dispute errors.

This will take work on your part, but the results can literally save you thousands of dollars. Errors on your credit report can range from something as simple as an incorrect account number to something as serious as a faulty collections notice or an account that's not yours. Review your credit report closely for any errors - date of account opening, balance information, payment information - and dispute incorrect entries. If a negative entry on your credit report has an incorrect date or other information, and you dispute it, you've got a 50% chance that the credit bureau will simply delete the negative item. If a credit bureau can't verify a disputed item within 30 days, they often delete it rather than avoid potential litigation.

4. Use your credit wisely.

If you have credit cards - use them. Continuous activity on your credit cards shows creditors that you can use credit responsibly, and lenders are much more willing to take a chance on working with you. But don't just run up credit card bills - use your credit cards for regular monthly expenses, such as gas and groceries, and then pay them off every month. By paying your credit cards off or carrying a very low balance, you will likely be able to keep the interest rate low. If you establish a good credit history and pay well, your credit score will rise quickly. Get a secured credit card, if necessary, to begin rebuilding your credit - but most importantly, use your credit wisely and responsibly and your credit score will improve.

Consider alternate home ownership options.

If you've begun the steps to rebuild your credit but you aren't ready to buy a home yet, consider a lease purchase option. A lease purchase option gives you the opportunity to build equity in your home as you re-establish your credit and work to qualify for a conventional mortgage. You can often get into a home with less of a down payment than you would need with conventional financing.

Watch our Free Video and get more information on how you can own a home even if you have poor credit and little or no down payment at BadCreditHomeFinder.com.

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