These days, with all the easy to get credit available everywhere you go, and even dropping through your letterbox every day, it's no wonder that a lot of people find themselves with credit problems. So if you want to buy a house, what bad credit mortgage options are available?
There are mortgage lenders that offer mortgages to people who have credit troubles. These mortgages are for people with less than perfect credit are called credit impaired mortgages or sub-prime mortgages.
When you go to the brokers office you will fill out an application form, and then the mortgage company will check your credit history. They do this by contacting special companies that keep records about the credit history of most people in the country.
If they look at your credit history and see that you have never had any credit problems then getting a mortgage will be very straightforward. But unfortunately, there are huge numbers of people who don't have perfect credit. For these people, it could be more difficult to get a mortgage, but there are bad credit mortgage options available to you.
Bad credit is caused by a few things; one of them is CCJs, short for County Court Judgements. You can get one of these judgements if you don't pay a loan, like a credit card, or car payments and the company you borrowed money from takes you to court.
Another bad credit problem is bankruptcy, if you've ever gone broke, and the people you owe money to have been hounding you. You might decide it to go bankrupt, to give you some breathing space to pay them back.
If you manage to pay them off within a year, or even you can't manage to play them back. After 12 months you can go back to court and ask that you will no longer be responsible paying those debts.
This is good for clearing up all your money problems but mortgage companies are not always happy about lending money to people who have been bankrupt. This is another situation where you may have only a few bad credit mortgage options.
The final problem that mortgage companies have, that may cause trouble with your bad credit mortgage options. Is if you already have a mortgage, or had one before and had problems making the payments. This will make the mortgage company, nervous about you making your payments if they lend you money for another house.
But don't worry there are several companies that can help with these credit impaired mortgages. So the first thing you need to do is find a good broker that can work with you. He needs to understand your problems, knows about your credit history, and has a few companies that he works with, that can help you to get a loan to buy your house.
These brokers are specialists in helping people with problems like yours; they have all the contacts you need to find a company that can help you get the mortgage that you want.
This broker, has probably spent years dealing with these companies and has got to know them, and knows what they want you to do so that you can get the mortgage, you deserve.
He will know all the right companies for you to try to get a mortgage with. He's played commission for getting your mortgage, that is how he makes his living. If he doesn't find you a mortgage, he won't get paid. So if he is willing to spend time looking for a mortgage for you, it's almost certainly means he will be able to help you out.
As you can see, even if you have bad credit, mortgage options are available to you. You just have to make sure that you find the right broker, who understands you, and is willing to help you to get a mortgage for your dream home.
Joe Kenny writes for Glitec.org, offering loans in the UK, visit them today for mortgages or for US residents, Rebuild for mortgages