A bad Credit Home Loan resource guide

If you're in the market for a home loan, and you have bad credit, you want to try to keep one thing high and one thing low. You want to make sure that your FICO credit score is high and your debt-to-income ratio is low.

If you are seeking a loan, most often the loans officer will do a credit check on you. The most popular credit report comes from FICO, which stands for Fair Isaac & Company, and credit scores are reported by each of the three major credit bureaus: TRW (Experian), Equifax, and Trans Union. On a scale between 365 and 840, a score of 680 will put a smile on the face of your loans officer, and greatly assist you in your quest for a mortgage loan.

On the other side of the coin, the lending company will also want to ensure that your debt-to-income ratio is low. This is the ratio of how much you owe compared to how much you make.

Sometimes when people are hunting for a house, they wish to purchase other large ticket items like furniture, appliances or a CAR. Now, all of these things are great, but there is a time and place for everything. And the wrong time to make these purchases is when you're applying for a mortgage loan.

Why? Because originally the borrower would have qualified in the price range they were looking for, except that the new car payment has raised their debt-to-income ratio, thus lowering their maximum purchase price.

So if you've got bad credit and you are looking for a home loan, don't go making major purchases just before you apply for a loan.

For more information on Bad Credit Home Loans, or to choose from a variety of related products and services, choose from the following:

About The Author:

Bob Buckham is a successful author and publisher of http://www.best-choice-loans.com. Many have commented that his website offers the best recommendations, links and information on loans, mortgages and financing.