First Time Home Buyer

With Bad Credit

Here's help for people with bad credit

who want to buy their first home.

In a perfect world all potential first time home buyers would have excellent credit reports. Unfortunately, we don't live in a perfect world. And not every person who would like to buy his first home will have a high credit score.

If you are a first time home buyer with bad credit, there is hope. It is still possible to qualify for a first home loan even with bad credit, but you would be far better off to take 6 months and get your credit repaired before applying for a mortgage.

The 6 months that you spend repairing your credit and building your credit score will provide years of benefits. The benefits will be twofold: you'll save tens of thousands of dollars over the life of your loan, and you will also be able to afford more house when you do make the purchase. Let's look at an example.

We'll look at two numbers: the first with a good credit score, the second with a poor credit score. In each example the loan amount is $150,000. Let's say that with a good credit score you could get a mortgage interest rate of 6%. Your monthly payments would be $899.33. Over the entire 30 years of the loan, you would pay an additional $173,757.28 in interest.

Now, if you have a poor credit score, your mortgage interest rate would be about 8%. Your monthly payments would be $1,100.65 and over the 30 year pay back period you would pay $246.232.87 just in interest.

Having a good credit score would save you over $200 per month and more than $72,000.00 over the life of the loan.

You see how it would be worth the 6 month wait in order to repair your credit? There is currently an excellent credit repair kit available for just the cost of shipping. The value is over $245.00, and you only have to pay $1.97 for shipping. It is highly recommended that you become an expert at raising your credit score. This kit will help you do just that.

Applying for your first mortgage with good credit is a far wiser move than applying as a first time home buyer with bad credit.