Your credit is very important to you. While you may still qualify for a mortgage and be able to buy a home even with bad credit, you can qualify for much more with better rates and a lower payment having good to great credit. It is important to check your credit at least once per year to check for inaccuracies, errors and to be able to know what a lender is going to see when you apply for a home mortgage loan. Knowing and being familiar with your credit report can also help prevent you from being taken advantage of. Therefore it is very possible to obtain a mortgage without having perfect credit or even having very bad credit. However, it is very important to make sure you work hard to keep your credit in good standing and to keep updated on checking your credit report. Please contact me by calling 1-888-418-4467 or by emailing me at dave@gofirstsecurity.com to find out where you rank with your credit score and what programs you qualify for.

Refinancing with Less Than Perfect Credit - Many homeowners mistakenly believe that they cannot qualify for a refinance or benefit from one because they have a less than perfect credit history. The fact is I have hundreds of loan programs available for borrowers who have had credit difficulties. A mortgage professional such as myself can analyze your individual situation and advise you if changes in your mortgage situation would benefit you.

Sometimes, all it takes is a little creative thinking for a loan to work. A good broker knows that not all people fit into a cookie cutter mold and that sometimes, you have to think outside of the box.

Most local banks will not deal with consumers with below average credit. This is one of many reasons that working with a mortgage broker can help you. Mortgage brokers have programs for below with excellent credit, less than perfect credit and downright bad credit. Not only do they have loans for all different credit types but they also have loans for all different income types. They can mix and match these types of loans together too. An example is if you were a self-employed individual and it was hard to document your income and your credit was below average, a mortgage broker may find the loan that suits you best is a sub-prime loan that will allow you to use bank statements as income documentation instead of W2's, tax returns and pay-stubs. Therefore, there are many choices available to consumers with less than perfect credit.

Use your new mortgage to build a better credit score! Its not easy, but making every mortgage payments on time for 24-36 months can help build higher credit scores. For this reason, many people will initally take a 2 year ARM or 3 year ARM, build a string payment history (and higher scores), then refinance into a lower, fixed rate mortgage. Managing credit properly requires persistence but allows you to save thousands of dollars in the long run.

Working with a broker means that you can often get approved for loans that you might not be able to otherwise. Most brokers work with as many as several hundred lenders, and have access to the loan programs from all of those lenders. This means that they can probably approve you for a loan, even with less than perfect credit.

Does your credit report contain errors? If so it could result in you over-paying on your next mortgage. Correcting mistaken accounts can take time so the process should be started as soon as you recognize the mistakes. Common mistakes are duplicate accounts, old accounts that have not been updated, or accounts that are marked "open" when in fact they have been paid and closed.

Refinancing with less than perfect credit typically comes with higher interest rates and substantial prepayment penalties. Borrowers should consider these "Subprime Loans" when they have FICO scores below 620.

Purchasing a home with less than perfect credit - It is possible to buy a home with credit that is not perfect. It is even possible to buy a home with flawed credit or below average credit and put little to no money down. Millions of homeowners have bought homes while having credit that is somewhat flawed or below average. Consult a mortgage broker to find out how much of a home you qualify for, how much of a down payment may be needed and what types of home loan programs are available with your exact credit scores.

Obtaining a new mortgage is a great opportunity to build a strong credit history and higher credit scores. After 2 or 3 years of on time payments marginal credit scores can really see an increase. To take full advantage of this opportunity you must make every payment on time and try not to acquire any new debt.

Many people believe their credit score will be worse than it actually is. Others believe they have good credit, but their credit score is actually low. So, the first step is to have your mortgage professional run a credit report on you and review it with you. Then he can gather some information from you and present you with some financing options based on your specific situation.

Mortgages for people with poor credit - If I have bad credit can I still buy a home or can I refinance my home if my credit scores are low? These are two of the most asked questions by consumers with less than perfect credit. You can obtain a mortgage home loan even if your credit is not perfect. There are many mortgage programs available for borrowers with flaws in their credit.

A mortgage can be a great way to build a strong credit history and high credit scores. Many people with poor credit opt for a short term adjustable rate mortgage because it offers a low payment. After a few years of on time payments your credit score can be greatly increased allowing you to refinance into a longer term fixed rate mortgage. To achieve higher credit scores in the first few years you must make every payment on time and not take on a lot of new debt.

If you have a low credit score, the interest rate you will qualify for will be higher than if you had good credit. The lower your score, the higher the rate. In addition, the percentage of the home's value (Loan-To-Value or LTV) you can borrow may also be lower than if you had a high credit score.

Good Way To Improve Your Credit - If youre trying to improve your credit you can call your creditors and explain to them what your trying to do and offer to pay 30% to 40% settlement. Most companies will allow this to happen. Its called a settlement payment. Once you have agreed on this, you should always get it in writing then submit it your all three Credit Bureaus. The bureaus should update your credit report to show settlement paid in full. Even if some creditors decline, you should still get it in writing. In a reasonable time you will see a difference.

Keep your balances on your revolving credit, such as credit cards and equity lines, to a minimum. You should keep all of your balances below 50% of your credit limits and preferably your target range should be 20-40% of your credit limit. An example of this would be if you had a credit card with a 1,000 dollar limit you would want to keep your balance between $200 and $400 ideally. This will help to boost your credit score. Never max your credit cards out and definitely do not go over your limits.

Another way of improving your credit is to ask parents or family members that have credit cards which are in good standing and they carry no balance to add you on as an authorized user. That way you will gain the history of that credit card onto your own credit report. But be advised that if they make a late payment or max out the credit card it will affect your credit report as well.

Applying for too much credit can end up hurting your score. Apply for one card at a time and allow some time before you apply for another.

The most important thing you can do for your credit score is to make all of your monthly payments on time. Even one late payment can drastically lower your score. If you are short on cash one month and you know you won't be able to pay all of your bills on time, try to put your debt payments on the top of your list of priorities.

You can also get a secured credit card. These are a great way to establish credit and are the easiest to get. You can do some research online to find banks that offer them.

I suggest you should first get a copy of your own credit report before applying for any loan. That way if there are any errors, you have time to dispute them. There are a few simple ways to build up your credit.
1. Establish a budget for yourself. Keep track of your spending.
2. Make sure to pay all of your bills on time.
3. Get a credit card, even if it’s a secured one.
(Hint: Every time you use your card, deduct the purchase amount from your checking account balance. Then, when the bill comes in, you already have the money to pay the bill in full).

Remember, there are not any fast ways to clean up your credit. Following these simple rules, will surely establish yourself as credit worthy over time.

If you are having a difficult time establishing credit, or re-establishing credit one option you may want to explore is applying for a Secured Line of Credit. In this type of loan you would be offering the bank some form of collateral to secure against the loan.