Home Loan for Those with Bad Credit
by Ellise Walsh

There is more interest than ever in home ownership, and more and more renters are taking the important step of becoming first time homeowners. However, for those with less than perfect credit, finding the right home loan can be a big challenge. There are many lenders who can help you stop throwing money away on rent and put you in a home of your own.

However, any prospective homeowner should be aware that there are lots of predatory lenders out there who will base loans on their needs and not your ability to pay. They will offer you a bad credit home mortgage loan that you may not be able to pay back. These unethical practices could lead you to default on the loan, being unable to repay your mortgage and eventually losing the home you worked so hard for.

There are a number of things that should raise red flags and warn you that you are dealing with a predatory home loan lender:

• Suggests that you falsify income or other information on the loan application. For example, be wary of a lender who tells you to say that your income is higher than it really is

• Pressures you into applying for a bad credit home mortgage loan or suggests that you apply for more money than you need to buy the home

• Pressures you into accepting monthly payments you cannot afford

• Fails to provide the required loan disclosures or tells you not to read the fine print on the loan application

• Misrepresents the kind of credit you're getting, such as calling a one-time loan a line of credit

• Promises one set of terms when you apply for the loan, then gives you another set of terms to sign — with no reasonable explanation for the change of terms

• Tells you to sign blank forms — and says they'll fill in the blanks later

• Refuses to provide you with copies of the documents that you've signed for your bad credit home mortgage loan

• Entice you with an unreasonably low introductory interest rate. These low teaser rates usually come bundled into mortgage loans whose ultimate interest rates are very high

How Can I Make Sure I get the Right Bad Credit Home Loan Lender for My Needs?

Always use common sense and follow your intuition. Also, if one lender offers an unbelievable offer, check with another lender to see what bad credit home mortgage loan they can offer you. If they can’t offer a similar product, then it probably doesn’t exist! Always remember that if it seems too good to be true, it probably is.

Always do your homework when shopping for any mortgage loan. If you are unsure about the reputation of the lender, check with the Better Business Bureau and get references from previous clients. Failing to do your homework and research up front could mean that you put your home at risk unnecessarily.

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