Should You Consolidate Your Debt?

If your in the market for a home loan, however your credit isn't all that
you would like for it to be, it's important that you know that there is some
hope. It won't be as easy as someone with spotless credit of course, but it
is possible.

Actually, right now it's easier than ever to get a home loan with bad credit
to be honest.

There are some things that you can do to increase your chance.
Here they are:

Find a property with built in equity. If you can find a home that already
has equity, it may be much more simple to getting a loan on the property. To
the lender, this could mean that you've already made some down payments on
that property. You'll have to consult a mortgage broker to see how this
helps you.

Be creative in your financing. Maybe the seller will take a second mortgage
on the property in fact. You can save a down payment by entering into a
contract with the seller that you'll make monthly payments with interest in
lieu of a down payment.
This is actually sometimes referred to as a lease option.

These days there are a ton of lenders that will give you a one hundred
percent financing, that is if you have a good credit score. However, paying
a down payment will lower your interest rate significantly.

If it's a timing concern, and you think that in a few months you'll be able
to have saved enough for a down payment, then it's probably better to wait,
if saving on your interest rate is important to you. This is good financial
planning on your part since you're planning ahead for a lower interest rate.

One thing to consider on that note however is that if it's a mortgage that
you feel you must take now, and that any amount of time is not going to help
you, then the option of refinancing is always there for you down the road.

Don't believe mortgage brokers when they tell you that they can't do
anything for you. You have to keep shopping for one that will, since some
brokers are more flexible than others, due to good relationships that they
have with the lenders directly.

One way to increase your chances is to go with an online service, that will
submit your application to various lenders, basically letting them fight for
your business, giving you a bit of an advantage. Even then however, your
loan application can get turned down if your credit is that bad.

At this point it may be a good idea for you to take a good look at your
problem, get credit counseling, and consolidate debt if necessary. It may
hurt to wait for that loan, but will only be helping your future, instead of
digging your hole even deeper.

About The Author: Jack Blacksmith published for http://www.debtania.com , a
site with topics around credit consolidation and personal finance. With his
detailed publications (for instance
http://www.debtania.com/negotiatesettlement.html on negotiate debt
settlement ) he showed his knowledge on the subject.