3/22/2010

MoneyMatters101.com Home Credit Information Ask The Credit Counselor Building Credit Buying A Home Consumer Credit Facts Credit Credit Help Credit Report Credit Score Credit Secrets Damaged Credit Deal with Creditors Debt Collectors Establishing Credit FICO Score FICO Scoring Changes First Credit Cards How Credit Impacts You How to Read Your Credit Report Improve Your Credit Inquiries Late Payments Low Interest Managing Credit Prevent ID Theft Professional Help (Video) Rebuild Credit Reduce Credit Debt Secured Credit Cards Store Credit Cards Student Credit Cards The Ongoing Credit Crunch Types Of Credit Cards Unsecured Credit Cards Visa Credit What Credit Means Who Has Access Your Credit Links Email Us Credit Cards Interest Rates Subprime Loans Student Debt	Trying To Buy A Home With Bad Credit In Today's Real Estate Market Although property values have gone down and interest rates are at their lowest point in many years, buying a home is tough for those who don't have good credit. Today, many lenders will not loan to people who have good FICO scores, let alone those with bad credit. Because of the mortgage meltdown and the downturn in the housing market of 2008, lenders have become very conservative in their lending practices, some to the point of not lending to homebuyers at all. Unlike the liberal spending practices that were prevalent during the 1990's and early to mid 2000's when money for home loans flowed freely from banks, mortgage companies, and other lenders, the resources have dried up. During those years, it was thought that the economy would continue to grow and expand, but eventually, the housing market collapsed and many people were forced into bankruptcy and/or foreclosure. Many banks, savings and loans, and mortgage companies, with little oversight from the federal government, had stopped policing themselves, thereby making bad loans to borrowers, many who had no real means of repaying their loans. Real Estate became inflated to the point where it was no longer affordable for people who wanted to buy homes, so many people were allowed to purchase property with little or no money down and no credit or employment verification. Now we are all paying the consequences. The lending pool has dried up and government bailouts are needed just to keep the economy from total collapse. So what can I do if I have bad credit and I want to buy a home? What you should do is be patient and try to pay off as much of your bad credit as possible. Make a solid, reasonable plan for yourself, and stick to it. Don't set goals that you can't possibly meet. Get into a matching funds savings plan at work (401k or 403b or other savings vehicle) and save as much money as you can. Talk to a realtor and a loan officer. Although banks and mortgage companies are reluctant to loan right now, there is no harm in talking to a loan representative. They can tell you what you need to do to clear up any derogatory credit you have and help you put together a plan that will help you get credit worthy. Today, many lenders, loan officers, mortgage representatives, and realtors, are struggling financially just like you are, so no lender, or realtor is going to be too busy that he or she won't take the time to work with you. If one loan officer, or realtor, won't take the time to help you, there are thousands who need your business, so it won't be to hard to find one who will. With the country heading into what looks like a serious recession, property values are most certain to continue going down so you will have the time to improve your credit rating and maybe still get a good price on a home in the future. If you make your plan and then work your plan, you should be out of your financial crunch in no time at all.	Featured Book Advertise on MoneyMatters101.com
	Finance Topic of the Month: Why Is It So Hard To Get Out Of Debt?
	Use of this web site constitutes acceptance of the Terms of Use. We are looking to create more mutually beneficial partnerships. If you are interested in partnering with MoneyMatters101.com, send us your proposal. MoneyMatters101.com™