If you want to buy a new house, you will have to qualify for a mortgage loan to obtain the property.
Having excellent credit is something that most lending companies prefer to see when working with customers searching for a home loan.
You have to remember that lending institutions want you to be able 
to complete the repayment of the loan, which means that your credit history, credit score, and your overall credit worthiness should be top-of-the-line when borrowing a large sum of money. Those that have poor credit history, or a credit score that is far lower than it should be, may be declined by mortgage lenders.
So if you have bad credit, does this mean that your chances of getting a home loan is minimal?
This is not the case at all. There are many lenders that will work with individuals that have bad credit history and are willing to extend financing to them. The demand is extremely high for bad credit loans. This is why lenders will do everything to get you the financing you need.
Of course, it is always recommended that you do your best to improve your current credit rating before you apply for a loan to get the house of your dreams. Most lending institutions will only provide the best mortgage deals to those with stellar credit, especially when the loans are extremely affordable.
In most cases, you will have to default to a reasonable bad credit mortgage loan, if you are on a timetable that requires you to find and acquire housing as fast as possible. You can find comparisons rates on the Internet if you want to narrow down your search. Quotes online is just an estimate and not the actual mortgage or loan that you will receive.
Your credit score is the primary factor from which the rate of interest for your loan is calculated.
Higher scores will almost always net the lowest possible rates. If your credit history is less than perfect, you can lower your interest rate when you apply for the loan by making just a few improvements here and there.
Do your research prior to submitting your application.
You might encounter lenders that does not accept or consider applicants with less than perfect credit. If you get rejected, this could be detrimental to your overall credit score. If you cannot find any information about bad credit loans, give them a call to make sure that they do offer this type of loan.
Try to meet your potential lender face-to-face.
By speaking with the loan officer, you can state your current credit situation and ask for assistance. Let the officer know if you have recently been laid off, or you have been off work due to family matters or an illness. Your loan application will have a higher chance of being approved if the lender understands your circumstances and how you are trying to improve your credit score.
BadCreditResources.com offers resources that specialize in providing Credit Cards For Bad Credit. Also check other offer for Loans For Bad Credit.
I found this an excellent read, and actually ended up here after searching for “bad credit mortgage”. Like a lot of people I took a beating because of the sub-prime mortgage scandal and, ironically, I did not have a sub prime mortgage. I was just unlucky enough to have a mortgage come due when the lender was unable to renew it because he was broke. That added a cost because of course I had to take whatever funds were available to refinance, then I lost my job because the lack of credit forced my employer to shut the doors. Anyway, I reorganized and now want to purchase another house, so was reading up one what hoops I now have to jump through since my CR is far from ideal. Thanks for the insight.
I need a mortgage and am going to have a difficult time qualifying. I appreciate the tips.
Hi Phil,
I’m glad you appreciate the tips. The best tip I have for you is, if you have time before you have to apply for a mortgage is to fix as much of the negative things on your credit report if you can. For many years I was a bill collector and I can tell you that when you wait until you are declined for a mortgage to clean up your credit its WAY more expensive. Once a bill collector sees that pull on your credit report from a mortgage company all negotiating the price goes right out the window! If its too late and you have already submitted your request to a mortgage broker, make sure they have a program for people with problem credit. I’m constantly surprised by people with credit problems that start looking for a mortgage loan at an A credit bank! The answer will always be no, no matter what the circumstances surrounding your credit problems. Even with 30+% down payment I’ve still seen banks say no to people with bad credit.
Wishing you luck!
Shelly