Carmon

Here's a question. Which came first, the chicken or the egg? Chickens hatch from eggs, but its the chickens that lay the eggs in the first place. One of life's age old mysteries. Well, there is another mystery that has been revealed. Which came first, unscrupulous lenders who take advantage of potential home buyers' desire to own a home. Using that desire to convince them to take on creative mortgages that otherwise they couldn't afford or want. Or is it shady borrowers who took advantage of all the creative financing that was available. Products like bad credit stated income loans.

It was previously standard practice to only offer stated income mortgages to people who had good to great credit. Then products begin to surface where even a borrower with marginal or bad credit could get these types of loans. Since your income isn't directly verified, a lot of 'truth stretching' occurred. What has recently happened with all the foreclosures is really just a market correction. I believe now people and lenders will revert back to the basics of preparing to apply for a mortgage.

I say expect the best, but prepare for the worst. I think the days of all of these wild west financing products are coming to an end. They want ever completely go away, but I'm sure the form they take will change.

One of the best things you can do to get a decent mortgage without resolving to any shady practices, is to work on getting your credit score up to par. Your credit score is based upon five factors:

Your payment history

Amount of credit

Length of your accounts

Types of credit

Inquires

By diligently working on these five items, you can see a drastic increase in your credit score. Pay all your bills on time, even the small $10 accounts, because they are figured in your score also. Pay down your credit cards until the balance is at least 30% of the original balance. Accounts that you've had for a long period of time shows that you are dependable and can handle long term commitments like a mortgage. Diversify the types of credit that you obtain. This shows that you have experience in managing different types commitments. Lastly, limit how you apply for credit. Don't just apply just to be doing so, have a plan and purpose.

Good credit..or bad credit, you CAN get a mortgage. Not only is a mortgage within your reach, but you can get a ZERO DOWN MORTGAGE Let 100's of lenders fight for your business and make your dreams come true. Click/paste Free Mortgage Compare Quote into your browser.

Your Partner In Success,

Christopher Wright, Financial Cancer Specialist
Free Credit Repair