Tips for your personal finances

Buying a home as an investment


Buying a home is an investment in your future. Even with bad credit you can start the process of rebuilding your credit and building your net worth through your home’s equity. By monitoring your credit, researching lenders, and selecting the right loan, you can purchase a home at reasonable rates.

Fix Your Credit First

Before you start shopping for a mortgage, make sure that your credit report is accurate. Follow up with the credit monitoring service to make sure all errors are fixed. You can get a free copy of your report from several companies.

While credit events remain on your report for up to ten years, they cease to be important after two years. So with a bankruptcy three years ago, it is possible to qualify for an “A” rated mortgage.

But there are other factors that determine your loan rates, such as your cash reserves and the size of your down payment. You can qualify for a conventional loan rates even with a poor credit score.

There are companies that would take advantage of your credit situation. They would have you believe that with bad credit, you will have to pay huge closing costs or rates double or triple of conventional loans to buy a home. Run from these lenders.

Subprime lenders offer bad credit loans at one to two points higher for each drop in credit rating. And loan fees are comparable to conventional loans. In order to find these companies, you need to request loan quotes.

With online lenders, you can receive these loan estimates within minutes. Based on your personal information, you can get a realistic picture of your loan costs and mortgage payment. And when financing through a subprime lender, you don’t have to pay for private mortgage insurance if your down payment is less than 20%.

Keep An Eye On The Future

When negotiating your mortgage, make sure you have the option to refinance in the future. Ask for no early payment fees, so you won’t have to pay thousands if you choose to move or refinance.

How to buy a home with bad credit


There are companies that would take advantage of your credit situation. They would have you believe that with bad credit, you will have to pay huge closing costs or rates double or triple of conventional loans to buy a home. Run from these lenders.

Subprime lenders offer bad credit loans at one to two points higher for each drop in credit rating. And loan fees are comparable to conventional loans. In order to find these companies, you need to request loan quotes.

With online lenders, you can receive these loan estimates within minutes. Based on your personal information, you can get a realistic picture of your loan costs and mortgage payment. And when financing through a subprime lender, you don’t have to pay for private mortgage insurance if your down payment is less than 20%.

Keep An Eye On The Future

When negotiating your mortgage, make sure you have the option to refinance in the future. Ask for no early payment fees, so you won’t have to pay thousands if you choose to move or refinance.