Obtaining a home loan with bad credit has never been harder in these turbulent economic times. With foreclosures happening across most street corners, lenders have become leery of giving loans to consumers who have a shown a lack of making payments on time or have filed for bankruptcy.

With this in mind, the consumer needs to back up their willingness to pay back a home mortgage loan by showing the lender you will not fall behind or default on the loan. Bring in a year's worth of utility and rent statements to the loan interview to show your on time payments. Displaying to the lender payments made to other institutes goes further than you just promising you will pay back the home loan.

Work first towards changing your credit score and rating before applying for a home loan. Changing your credit score can take time as the information needed to move the score takes time to propagate to nudge it upwards.

Another way to show a lender you are a good credit risk, is to take out a few small loans that you do not have to pay interest on if paid in full in an allotted time period. This not only shows the lender you can pay off loans, but it will contribute to increasing your credit score.

Once you have at least six months of regular on time payments, talk to a lending officer on your ability to acquire a home mortgage.
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Bad Credit Home Loan

Home buyers with bad credit usually pay a higher interest rate, put down a larger down payment and may even pay additional fees. For extremely bad credit, banking institutions may refuse you financing.

If looking for an apartment to rent with bad credit, you may have difficulty finding a landlord willing to rent to you. Landlords want their rent payments on time and a bad credit score does not help your case.
Many jobs dealing with money or sensitive information ask their applicants to complete a credit check. With bad credit loans you may appear as more of a liability than an asset to a company.

Many people associate bad credit with poor financial management and having poor character as well. If you have poor credit, many employers may assume you may perform illegal activities to help with your money troubles.