After you finally sign on the dotted line and move into your new home, you might tell your friends and family how proud you are to finally own your dream home. But in reality, the only thing you really own is a 30-year mortgage, along with a small portion of equity in that house. But good things come to those who wait, and owning a home is definitely worth that wait.
But in order to get there, you’ll want to find the cheapest mortgages available. Unfortunately, many Americans suffer from bad credit, which can make securing low interest home loans difficult to impossible. So how can you go about finding cheap mortgages with bad credit? Here’s three simple ways to get started…
1. Try, Try Again
Remember what we said about waiting? If your credit is really, really bad, then you might be better off financially if you wait until you can get the cheap mortgages your family deserves. Don’t rush into a high interest rate mortgage; instead, spend a few years building back up your credit score, and then try applying for cheap mortgages again.
2. High Down Payment Mortgages
If you don’t have time to wait to slowly build up good credit, then the best way to counteract your credit score is to offer a large down payment. So if you really do find your dream home, but aren’t getting the cheap mortgages you hoped for, consider making a large down payment instead. Not only can a bigger down payment help balance out bad credit scores, but it will also give you a larger slice of equity in the home.
3. Compare Mortgage Lenders
In addition to our previous pieces of advice, it’s essential to make sure that you shop around for the best mortgage lenders in your region. The best mortgage lenders will be able to help you secure the best interest rates for home loans possible. Plus, the best mortgage lenders will have experience working with borrowers with bad credit, too.
Got any other hot tips for Americans with bad credit? Let us know in the comments…