BuyingAHome-JenniferChristenot

owner or lender is great when lending to individuals with low
credit scores and because of this, they’ll charge a much higher
interest rate on the home, meaning it will take even longer to
pay off and own the home.
14.) Can I buy a home if I have bad credit?
Buying a home with a less than perfect credit history is
possible, but it’s going to be a lot harder to get a loan than
someone with outstanding credit. You might be required
to supply a larger down payment and you could even be
required to pay for mortgage insurance. This type of insurance
is provided by companies and it protects the lender in case the
buyer is unable to make payments on their mortgage. While
this insurance is in place to give consumers the opportunity
to purchase a house when they’d otherwise be unable to do
so, it’s also very costly and can add hundreds of dollars to your
mortgage payment every month.
Another factor that will greatly increase the amount of the
monthly mortgage payment is the amount of interest you’ll
need to pay. When a buyer has bad credit, the lender assumes
a much greater amount of risk and for this they will charge
a much higher interest rate. For this reason, it’s extremely
important that before buying a home you try to get your FICO
score as high as possible and that you try to repair any past
credit problems.
FAQ’S ABOUT BUYING A HOME | JENNIFER CHRISTENOT
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