There is an endless list of reasons why people suffer from bad credit, not all of them are due to irresponsible behavior. Fortunately, many have been able to clear up their past debt and begin saving money to purchase a home. By taking a few extra steps into consideration, it is possible to buy a home even with bad credit. In fact, it is advised that you should attempt to do so. Before you do, there are some things you can do to ensure you have the best possible opportunity to present your credit problems in a fair light.
Providing explanations about items that are on your credit report helps overcome any objections a lender may have about lending the funds to buy your home. Learning how to prepare for your loan application can help you get the home of your dreams.
For those with prior credit issues, the first thing to do is request a copy of their credit report. The Federal Trade Commission (FTC) has specific rules in place allowing consumers to request a free credit report annually. This may be done as follows (per the FTC website):
Request your free report online, by phone, or by mail. Visit AnnualCreditReport.com, call 1-877-322-8228, or fill out the Annual Credit Report Request form, and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.