For a lot of people buying a house for the first time can be exciting and fun, but when you have poor credit, it could be a challenge for you. Let’s face the fact that one of the main factors that a mortgage lender considers when approving or denying an applicant for a loan is credit history. The good news is for those who has poor credit, there are sub prime lenders that are willing to loan money to first-time home buyers with such a poor credit.
First of all you have to find a sub prime lender for a poor-credit loan. A subprime lender is a lender that offers loans to those who do not have good credit. These are not your traditional banks and lenders so the fastest and easiest way to find a subprime lender is to contact a mortgage broker or search your local phone for mortgage lenders that specialize in subprime loans.
Step number 2 is to submit a mortgage application. Once you find a subprime lender, the next step is to apply for the mortgage. Even if you do not have a property chosen yet, you can always submit a mortgage application and the subprime lender will approve you or deny you based on your personal financial information.
Last step which is step number 3 is to submit supporting documentation. You’ll need to submit copies of your last two year’s taxes returns, the last two month’s paychecks stubs and copies of the last two month’s bank and brokerage account statements. These documents along with the information you supply on the mortgage application are used by the lender to qualify you for the mortgage. Next thing you know you will have your home immediately.