| Buying a home with bad credit already puts you | | | | in the same field. However, if you work on |
| at an unfair disadvantage. Even if you have the | | | | commission or considering self-employment, avoid |
| income to afford a mortgage and other home | | | | such changes until the loan papers are signed. |
| expenses, you are considered a risky borrower | | | | Mortgage lenders require predictable income. If |
| by most lender standards. In this instance, it is | | | | you have a habit of changing employers, lenders |
| important to educate yourself on the home | | | | may be unable to foresee future earnings. To |
| buying process, and avoid common mistakes, | | | | avoid hold-ups or the hassle of re-qualifying for a |
| which could disqualify you for a mortgage loan. | | | | mortgage loan, it helps to maintain the same |
| Avoid Making a Major Purchase | | | | employer until the loan papers are finalized. |
| Before approving a mortgage loan application, | | | | Avoid Switching Banks |
| lenders will carefully examine your finances to | | | | Getting a mortgage loan approval is a long and |
| ensure that you are realistically capable of handling | | | | tedious process. In addition to reviewing a |
| a mortgage payment. If you earn a large salary, | | | | borrower's credit and income, lenders require |
| qualifying for the mortgage is likely the least of | | | | banking information. On average, lenders want to |
| your concerns. | | | | see all banking statements for the last three to |
| On the other hand, if your salary is modest, | | | | six months. If you are self-employed, they may |
| adding an additional monthly payment before the | | | | request the past year's banking statements. Here |
| loan is final may significantly increase your debt to | | | | is a list of recommended Bad Credit Mortgage |
| income ratio. When this occurs, lenders may | | | | Lenders online. It's important to use a reputable |
| decide that you are unable to afford the home. | | | | lender online to make sure your personal |
| With this said, avoid making any large purchases | | | | information is secure. |
| prior to closing. This might include financing a | | | | Paper trails are very important. When a potential |
| vehicle, furniture, etc. | | | | borrower transfers funds to another financial |
| Avoid Changing Employers | | | | institution or opens a new banking account, it |
| In some cases, changing or switching employers | | | | becomes difficult for a mortgage lender to verify |
| while trying to buy a home will have little effect | | | | or document funds. |
| on a mortgage approval - especially if you remain | | | | |