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How to Get a Home Loan with Bad Credit

Is it possible for people with bad credit to get a loan in order to buy a property? You’ll be amazed at how many people are in this situation dying to know how to get a home loan with bad credit. Today I’m giving you three different strategies on how you can invest on a property using a bank loan even if you have bad credit.

Find the right bank THROUGH a broker

1Work with a loan broker or a mortgage officer that’s brokering out to many different banks and is doing high volume. Why?

Because even if a bank can pre-qualify you for some type of loan, that’s just one bank. They weren’t all created equal, and so they have different rules, which is why I recommend going to a broker that works with 20 or more different banks. The point is, these brokers won’t work with that many banks unless they’re a serious operation doing high volume.

Work with a loan broker or a mortgage officer that’s brokering out to many different banks and is doing high volume. Why?

Because even if a bank can pre-qualify you for some type of loan, that’s just one bank. They weren’t all created equal, and so they have different rules, which is why I recommend going to a broker that works with 20 or more different banks. The point is, these brokers won’t work with that many banks unless they’re a serious operation doing high volume.

Tip!: When talking to a broker, ask “How many hundreds of millions of dollars’ worth of real estate do you broker out each year?”. If they look at you funny, end the meeting quick. That’s not the loan officer likely to find the right option for you.

Perform credit maintenance.

2If you want to get a home loan, you should fix your bad credit. How? By paying your stuff on time. Don’t underestimate the importance of paying your credit lines on time! Sometimes we get hiccups, sometimes we’re late on a payment, and then all of a sudden we say “Hey, I’ve got to get serious about qualifying for a mortgage.”

Find a credit repair company you can trust with credit maintenance. This is not one of those things where less is more. You’re not looking for the cheapest program. You’re looking for a company that has been in business for a really long time and that has worked with thousands of clients.

Tip!: The keyword here is ‘attorney’’. If an attorney is involved, it’s more of a legitimate program. Plus!… Attorneys know the tricks and the workarounds. They’re going to challenge inquiries!

For example, I remember that one time I was trying to qualify for a mortgage and I found out that my credit had dropped in the last 90 days by 50 points and I was alarmed. And when I found out why it’s because that last couple of months I had been shopping at the Gap, at JC Penney’s, or wherever and they kept offering me that seductive 10% discount if I’d use the in-store credit card and applied for it. Little did I know that every time I was getting that discount to save a few bucks, I was actually putting out an inquiry that’s temporarily dropping my credit!

So the credit repair company I worked with that includes an attorney challenged the inquiries. By law, if you send a challenge letter to whatever company did the inquiry and they don’t report back within a short timeframe with the response and whether the inquiry was legitimate or not, then they have to drop it by law because the credit bureau has to report that.

What that means to you: It’s good news for you! Why? Because very few companies are set up and ready to take those requests seriously, so they just kind of fall by the wayside. In fact, I saw my 50 point drop go back up 80 points and my credit got stronger.

Perform credit maintenance.

3If you want to get a home loan, you should fix your bad credit. How? By paying your stuff on time. Don’t underestimate the importance of paying your credit lines on time! Sometimes we get hiccups, sometimes we’re late on a payment, and then all of a sudden we say “Hey, I’ve got to get serious about qualifying for a mortgage.”

Find a credit repair company you can trust with credit maintenance. This is not one of those things where less is more. You’re not looking for the cheapest program. You’re looking for a company that has been in business for a really long time and that has worked with thousands of clients.

Tip!: The keyword here is ‘attorney’’. If an attorney is involved, it’s more of a legitimate program. Plus!… Attorneys know the tricks and the workarounds. They’re going to challenge inquiries! – See more at: http://reinvestortv.com/how-to-get-a-home-loan-with-bad-credit/#sthash.y5aHnHT9.dpuf

There’s a lot of sellers willing to do that, and guess what, you’ve just negotiated yourself right past the bank by using the person that has the mortgage and has the bank. And then you’re right into your house!

Don’t forget to negotiate that they put you on the title. Why? Because if you’re represented on title for at least two years then after two years you can actually refinance onto the house. What does that mean? You basically back-doored yourself into a super easy program that most banks will do because if they see you’ve been on title for two years, then they’re going to say “Well, why wouldn’t we let them refinance it?”. And qualifying for a refinance is way easier than qualifying for a purchase!

If you’ve got bad credit, it’s not the end of the world. You have options! You can get into real estate and you don’t have to wait. If you need to wait or feel like that would be the best option for you, then just focus on doing some credit maintenance and some credit repairs and stick with it. That’s the key!

Real estate done correctly is a long-term play and having that slice of American dream is really key, so stick with it. Apply these strategies on how to qualify for a home loan with bad credit and get into that dream home soon!

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