You may think it’s impossible to buy a home if you have less-than-great credit.  The good news is that getting into your dream home is not as out of reach as you think.   However, you may have some challenges to overcome.  We at Parker Real Estate are happy to offer you these tips.

First, see where you’re at.  Knowing your credit score is the first step to the process.  It’s best to have a score of at least 760, as lenders will offer the best rates to these customers.  But what if you don’t?  Some lenders will offer loans to those with scores of 62o, but even if you have a score that’s lower, a mortgage broker may be able to help.

Work with a mortgage broker.  These professionals are able to access many loans from dozens of lenders.  A broker can find a way to make sure that you get a loan.  The loan may not have perfect terms, but at least you’ll be able to buy your home.

Determine your ability to pay.  If you don’t have much cash and a lot of debt, it will become harder for you to find a loan.  Lenders will look at these factors to determine if you can afford the loan amount you’re asking.  If they can’t give you a loan, you may even have to settle for a cheaper housing alternative than what you originally planned.

If all else fails, wait.  There’s nothing wrong with waiting longer to buy your home if your credit score isn’t the greatest.  This will give you time to clear out debt, improve your score, and save more cash for a down payment.  By then, you may be able to get a loan with a lower interest rate.  And that’s always a good idea.

All hope is not lost if you don’t have the best credit score.  In a worst case scenario, you’ll have time to turn your finances around.  And when you’re ready to dive in and buy your North Alabama home, talk to us.  We’re here to help.