Submitted by szecsodi1981 on Sun, 03/18/2012 - 20:08
Can you get a loan if your credit is bad but you have money to pay off everything and money for a down payment?
Can you get a loan if your credit is bad but you have money to pay off everything and money for a down payment?
My husband and I want to buy a house but have bad credit. We have enough money now to pay off all our debts and make a down payment on a house. We just wonder if lenders will give us a chance once we pay everything off and how long we have to wait.
4 Answers
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With a bad credit, none of the lenders will be ready to offer you a loan though you have the money to pay off the down payment. You will have to improve your credit and then apply for a mortgage.
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You can check out the given page in order to find out what steps you need to take in order to improve your credit: http://www.mortgagefit.com/credit-rating/credit-repair.html .
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You will have to boost your credit score before approaching a lender for home loan. This is because none of the lenders will approve your loan request when you have bad credit score. For this, you should take the necessary steps so that you can become credit worthy. However, there are exception cases, when a lender may agree to approve your loan request even with bad credit score. In that situation, you will be charged exhorbitantly high interest rate on your home loan because the lender feels that you may make default in repaying the home loan.
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The good news is, there are several companies which dedicate themselves into helping people who wish to apply for bad credit loans. You could always ask around first so that you will be assured of obtaining the best deals and the lowest interest rates despite your bad credit condition. However, since you have a bad credit score, it is a given fact that banks or lenders will always charge you a higher interest rate. Keep in mind though, that despite the high interest rate, that is usually the lowest a company can offer to compensate for the risk they are putting themselves at. You can opt to increase your chances of being approved of your request by having a co-signer with you. Make sure that your co-signer has a good credit history so that banks and lenders are encouraged and are more willing to help you out. If you need more help, you can visit http://www.badcredithistories.com/have-poor-credit-but-want-to-apply-for...