By Marie-Claire Smith

The dream of home ownership is one that is ingrained into in our very culture. Of course, there is nothing at all wrong with renting or leasing a residence for one’s entire life. However, there is something very special about the ability to buy a home and call it one’s own.

It is not the feeling of pride of home ownership alone that drives most people to want to buy a house. There are other reasons. For example, in a 30 year mortgage, after 5-10 years you can really start building up some significant equity in your home. This amounts to a nest egg for many, many people.

And yet for still others, even the financial argument does not sway them much. Their interest in owning a home all boils down to the feeling of not having to answer to anyone when making home improvements or just living the way they want to live.

For over 99% of us, the one and only path to home ownership is via a mortgage. Unfortunately, so many of us today are credit-challenged; a mortgage is just too far out of reach, especially once mortgage lenders get wind of your credit situation.

The good news is that there are special bad credit mortgage lenders out there who specialize in working with people with low FICO scores. If you are looking for a bad credit mortgage lender, here are 3 tips for finding the right one:

1. Decide whether it makes more sense in your case to rent or own:

Before finding a bad credit lender, it is a good idea to do some soul-searching. After all, are you really up for owning your own house? In many ways, having a house is a pain. It also can be expensive. Make sure you have the resolve to not only take out a loan but go through all the motions of a true homeowner for years to come.

2. Build a list of bad credit mortgage lenders:

If you have decided that home ownership is for you, begin your journey by creating a list of mortgage lenders who advertise that they specialize in working with bad-credit individuals. Of course, a good ad does not mean they are the right lender for you. But, you may as well be fishing where the fish are! Make sure your list includes at least 5 lenders.

3. Negotiation tip: always have a second alternative in mind:

As you begin the application process with each lender, you will in effect be negotiating. Even if it doesn’t feel like it to you, every interaction you have with your would-be lender is a chance for them to get a good impression of you.

An excellent way to exude confidence about your ability to get the best rate is this: during the negotiation, always keep in the back of your mind the knowledge that you have a next-best alternative if this doesn’t work out. This alternative could be another loan offer, or it may just be your ability to continue renting for another year. No matter what it is, having this next best alternative in your back pocket will likely result in your getting a better offer. Don’t believe it? Just give it a try.

Follow these 3 tips for finding a bad credit mortgage lender.

About the Author: Get a list of bad credit mortgage lenders at:

Bad Credit Mortgage Lender Guide

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Source:

isnare.com

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