First-Time Buyers Should Keep Their Eyes On The Prize

Online, February 27, 2011 (Newswire.com) - Everyone needs a place to call home, regardless of what your credit is or isn't. If you have poor credit and are looking at home ownership, you may be worried about what kind of difficulties you'll encounter.

While you should be a little concerned, it's probably best to approach the circumstance as more of a challenge than a difficulty. You will face higher interest rates and higher fees than the usual buyer. Your mortgage for a bad credit loan will cost you more because you have a poor credit rating.

But accept the challenge. You may not be as bad off as you thought. As a first-time homebuyer with poor credit, you should start doing things to enable you to obtain the best possible financing. The fix won't come overnight, but you can begin to take steps to fix it.

Start by getting your credit report from all three agencies.
Examine each report carefully. If you find errors, write explanations of each and ask that they be removed from you report.

Next, you'll want to seek out a flexible seller. Many homeowners looking to sell have had their homes on the market for months. Use this to your advantage. The homeowner will likely be sympathetic, since he's had to deal with rough times as well.

Get creative when working toward home ownership. One option is to lease with an option to buy. This can help you establish credit with the owner.

Remember: being a prospective homeowner with poor credit is not so much a difficulty as it is a challenge. Keep your nose to the wind, and work on improving your credit score. Even with poor credit, home ownership can become a reality.