“Here in this write-up, we share with you a five-step process through which you can avail home loans for bad credit in Houston. Read on to know more.”
Looking for home loans and don’t have the perfect credit score? If you have read through the hundreds of informative contents that is available online,then chances are you have already beenrejected. But did you know people with Credit Scores as low as 530 can actually have their property financed and companies such as Clear Lending (https://www.clearlending.com/)are helping them in this endeavor.
So, here is our five-stepguide for success with home loans for bad credit in Houston.
# Step 1 – Find a Lending Service Company
The first step to success is finding a lending service company that is driven by the goal of helping loan seekers find the best lenders at the most attractive interest rates.Clear Lending is one such company that has established strong credentials and helps its clients at every stage of availing loans. It educates you on the technicalities of different loan programs and helps you make the best choice.
# Step 2 – Opt for FHA Loan
While there are a number of loan options available in the market, FHA loan is your best option at handif you have a bad credit score. This home loan program comes at attractive interest rates and is targeted towards customers who don’t have high income and seeking loans for owning their first property. You can make as low as 3.5% down payment and avail this loan.
# Step 3 – Fill Pre-Approval Form Carefully
Lending service companies usually ask you to fill up a Pre-Approval form, where you will have to fill all the relevant information that is required for the lender to process your loan. Make sure you do this carefully and negate the chances of any misinformation going through in terms of your income, credit score etc. Unintentional errors while filling forms are quite common and it is one of the major reasons why many loan applications get rejected and more so in cases where you don’t have a perfect credit score.
# Step 4 – Choose the Right Property
This is another idea that often goes understated. If you are able to find a property where the selling price is lower than the value of the property (some people need to sell at a short notice and often accept a cut from the market value), you improve your odds. The lenders see this as positive equity and it takes you a step closer to loan approval.
# Step 5 – Make Large Down Payment
If you have a bad credit score, then you can make the proposition attractive for the lending company by making a determined effort to make a bigger down payment. For instance, in case of FHA loans, if you have Credit Score between 530 and 579, you need to make 10% down payment; but if you can make a larger share as down payment, you improve your odds substantially and this may also help you bring down the interest rates.
With these five steps, you can easily avail home loans even when you don’t have aperfect credit score or have a low income. It is important that you seek help from loan specialists as they would help you find lenders who offer loans at attractive rates.
About Author: Joan Gallardo with his 18+ years of experience as Senior Loan Officer, is a wealth of knowledge dealing with home loans for bad credit in Houston and guides his clients in successfully availing loans. He has written several blogs and articles about first time home buyer programs in Houston.