Jun 25, 2010
Mortgage Advice for Bad Credit Borrowers
These days, getting a mortgage has become increasingly difficult with financial institutions implementing tighter guidelines on who can qualify for a mortgage or for some refinancing.
There are a lot of options out there and also some government programs that can help people out of this rut. For someone with a bad credit score, this can be even more difficult. Here are some ways to help you chances.
If you have bad credit, you probably have a credit score that is less than 620. This is the seemingly “basic” standard that banks prefer for people that are looking for a mortgage these days. If you’ve filed for bankruptcy, you must have at least 2 years of a “clean slate” since your bankruptcy filing. If you have been foreclosed, you need 3 years of good credit standing. By showing that you have secured a good income and can meet your debt obligations, you increase your chances of being pre approved for your mortgage or refinancing application.