Posted on: 11 May 2020
Having no credit makes buying a house almost as challenging as having bad credit. Yet, there are ways you can buy a house if you have no credit or bad credit. If you currently have no credit, you may want to boost your chances of getting approved for a loan by doing the following things.
Save Up More Money
One way to boost your chances of approval is by providing a lender with a hefty down payment. If you are willing and able to offer a large sum of cash as a down payment, lenders may take you more seriously. Lenders also view this offering as a reduction in risk level. If they lend you a lower amount for a house purchase, they have less to lose. Additionally, your large down payment provides security to the lender. Most people who invest a lot of money into something will work hard to keep it.
Start Building Your Credit
If you have no credit, why not start building your credit? You can do this with a few easy steps, and while you cannot build it overnight, you will build it faster if you start now. To follow this step, take out a small loan and pay it off, or apply for a secured credit card. Look for ways to add positive details to your credit report and watch it pay off. If you can add a few positive things to your report, it will show you have some credit instead of no credit.
Get a Cosigner Involved
Did you also know that you can have a person sign the loan with you to help you get approved? The person who signs the loan with you is the cosigner. The lender views that person's credit when deciding on your loan approval. Having the right cosigner will improve your chances of getting an approval from a lender.
Buy a Home on Contract
The other option you have is buying a house on a contract. The benefit of this option is that you will not need a mortgage loan to buy the house. You buy the property from the seller, and the seller finances it to you.
By following these tips, you might find a lender that will approve a mortgage loan for you. If you have questions about buying a home with no credit financing, a good place to start is by talking to a real estate agent.Share