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Buying a Home With Bad Credit - Why a Recent Bankruptcy Will Not Stop You From Getting Approved
...... should be closed. These open accounts can have a negative impact on your credit score.
Appeal To Mortgage Lenders
To appeal to mortgage lenders with a bad credit history, increase your down payment and cash reserves. A large down payment ensures that the mortgage company will receive at least a partial return on their investment if they have to foreclose. A FICO score of 580 will require at least a 5% down payment, and lower scores will require a larger down payment.
Cash reserves ensure that the borrower has enough resources to weather a temporary financial emergency. Mortgage lenders like to see at least two months worth of payments in a savings account, but a higher amount will only help your application.
Online Mortgage Brokers
Online mortgage brokers also make it easier to find financing for people with adverse credit. Through their websites, you can compare multiple finance offers from different lenders, ensuring you get the best rates and terms to buy a home.
To view our list of recommended bad credit home loan companies online, visit this page: Recommended Bad Credit Mortgage Loan Companies Online.
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