How to Buy a House With Bad Credit

How To Buy a House With Bad Credit

Gustan Cho Associates are mortgage brokers licensed in 48 states

This guide covers how to buy a house with bad credit.  Many folks assume you cannot get a mortgage loan with bad credit. Many non-believers frequently ask can you please help us how to buy a house with bad credit. The anwer to the frequently asked question how to buy a house with bad credit is YES.  

Credit and employment are the two most important factors when qualifying for a mortgage. A mortgage loan applicant’s credit profile is important because it reflects a person’s payment history.

Lenders can easily see how financially responsible a loan applicant is by analyzing a loan applicant’s tri-merger credit report. The credit report reflects the borrower’s past payment pattern history. Lenders cannot predict the future of a borrower. However, a consumer’s past credit and payment history of paying their bills shows how they will pay their future mortgage payments.

Importance of Employment History Buying a House With Bad Credit

Solid employment shows income stability. No matter how strong a person’s credit is, if they have no incoming stable income, they will have a hard time paying their bills. This holds especially true with paying mortgage payments. Many employers often do a financial background check when hiring new employees.

Credit checks are often conducted when an employee is considered for a job promotion. The reason many employers run credit checks is that they feel that candidates with good credit and higher credit scores are financially responsible.

Many lenders will view bad credit employees as financially irresponsible. In this blog, we will discuss how to buy a house with bad credit. We will also cover how to buy a house with bad credit and getting qualified and pre-approved for a mortgage.

How To Buy a House With Bad Credit and Poor Employment History

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In this section we will cover how to buy a house with bad credit and weak employment history. Many companies implement a credit background check during the hiring process. Unfortunately, many talented hard job applicants get denied for a job position because of having bad credit. Many employers judge potential job prospects’s character by analyzing their credit reports. The way human resource advisors determine the probability of a job candidate’s performance is through looking at the applicant’s past payment history. Did the person pay their bills on time.  Click here to buy a house with bad credit

How Companies View Job Applicants With Bad Credit

People not paying their bills on time is often classified as being financially irresponsible.  Is this fair? Is it fair to deny a job to a candidate because of the job prospect having prior bad credit? Should employers judge your ability to perform in a job by your bill-paying performance? 

The trend of employers checking new hirees credit report is a common practice among all industries. Private and government employers in all fields are running credit background checks as part of their hiring process.

Many medium to large size employers will also run credit background check during employee’s promotion process. Employer credit report checks can prevent the nation’s hardest hit job seekers from entering the workforce. Employers conduct these checks for job seekers applying for positions. Employer credit checks are common and they’re keeping people from getting jobs.

How to Buy a House With Bad Credit For New Job Applicants

The job market has been tough for workers either finding a new job or being promoted with a company that you already work for. Did you ever imagine that you wouldn’t land a job because of your credit report?  Well, it is possible. If you are looking to change careers, find a new job, get promoted or keep the job that you have a bad credit report can hold you back. A new study shows that one in four unemployed Americans has been required to go through a credit report check when applying for a job. One in ten has been denied jobs due to negative information in their credit report. Six out of ten private employers check the credit history of at least some of their job applicants and 13% conduct them on all candidates.

What Do Employers and Lenders Look For in Credit Reports

In this section we will cover how employers and mortgage lenders look for on a person’s credit report. Both mortgage lenders and companies hiring for new employees are looking for a persons past payment history because both assume a person paying their bills timely over a course of time is a person who is financially responsible.

For a lender, financial irresponsibility means the borrower will have a difficult time to repay the mortgage on time. Under the lenders view, poor payment history means there is a good chance the borrowers will default on the new mortgage.

On the flip side, a past poor payment history show the person is financially irresponsible. Financially irresponsible people are judged as poor habits are hard to change therefore they will continue to be financially irresponsible in the future. For an employer, with financial irresponsibility comes large liability for the business therefore not a good fit for the business as a potential employee.

Why Employers and Creditors Check Person’s Credit

The main reason to check a person’s credit report is to get a sense of the overall dependability of a job applicant. which determine character for employers and ability to repay for creditors.  Credit report checks are used to screen applicants for employment positions. Lenders run a tri-merger credit report to determine the borrower’s ability to repay their new mortgage payment.

Some of the reasons for bad credit often is due to unemployment and the loss of health insurance, illness, death of spouse who was the main wage earner, divorce, or other extenuating circumstances.

Negative credit tradelines on credit report can be due to bankruptcies, charge offs, late payments, foreclosure, judgments, repossessions, liens and collection accounts. You can also have errors on your credit report and this can keep you from getting employment positions. Check your credit report so that you will know exactly what is reporting.

How to Buy a House With Bad Credit With a Mortgage Approval

The Team at Gustan Cho Associates can help home buyers prepare for a mortgage by advising buyers on what to do to optimize their credit Home buyers do not need to hire a third-party credit repair company. There are no costs in Gustan Cho Associates helping borrowers with re-establishing their credit.

To keep ahead of your credit report is somewhat a task but once you do this, you will know exactly what is on your report and what you can do to repair your credit report before others see it! 

Gustan Cho Associates at NEXA Mortgage, LLC dba as Gustan Cho Associates is a national five-star mortgage lender with no overlays on government and conventional loans. The team at Gustan Cho Associates offers business, commercial, and residential non-QM and alternative financing mortgage loans. There are no waiting period requirements after bankruptcy, foreclosure, deed-in-lieu of foreclosure, and short sale on non-QM  and alternative financing loan programs. For more information on this blog, please contact us at 800-900-8569 or text us for faster response. Or email us at  Get approval for buy a house with bad credit scores

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