The only way to get bad credit is to not pay the debts you owe. If someone makes “mad money” but has historically shown that they don’t think its a priority to pay their debts, then there is a high probability they will choose to spend their money elsewhere, rather than paying the mortgage that they already committed to. If you make “mad money” then just save up a big fat down payment really quick and you should have no problem buying a house.
if you have bad credit, obviously you CAN’T handle the mad money you are making – racking up too much debt – pay off your debts with your mad money and save for the house-you’ll need at least 10% in cash for down payment, closing costs and initial move-in fees, maybe appliances and furniture, emergency repairs
Purchasing a home involves big money. A home mortgage lender is taking a big risk. And as we’re seeing, just because the bank owns the house does not mean they can actually sell it and get their money back if the borrower defaults.
The answer to your question is quite simple: credit history reports how well one has done keeping up with payments on borrowed money. If payment history shows a lot of late or missed payments, then a lender is going to figure that person is likely to stiff them on house payments especially since bankruptcy law says one’s primary residence cannot be taken away.
Everybody wins when you have good credit. You get to sleep at night knowing you don’t have bill collectors pounding on your door, and a lender gets willing to help when financing is needed sooner than you can save up the money.
Tags: credit, Even, hard, home, Home Loan With Bad Credit, loan, Loan With Bad Credit, Mad Money, money
7 Comments at "Why is it so hard to get a home loan with bad credit even if you make mad money?"
The only way to get bad credit is to not pay the debts you owe. If someone makes “mad money” but has historically shown that they don’t think its a priority to pay their debts, then there is a high probability they will choose to spend their money elsewhere, rather than paying the mortgage that they already committed to. If you make “mad money” then just save up a big fat down payment really quick and you should have no problem buying a house.
Your credit score is a way to measure trust.
It’s like agreeing to marry someone you just met… who you know has cheated on every other person they’ve dated in the past.
You can make a million a week – but if you cannot prove that you are responsible with it, the AMOUNT of money you make isn’t worth diddly-squat!
Because your bad credit shows that you have a history of not paying your debts.
If you make mad money then you should not need a loan.
if you have bad credit, obviously you CAN’T handle the mad money you are making – racking up too much debt – pay off your debts with your mad money and save for the house-you’ll need at least 10% in cash for down payment, closing costs and initial move-in fees, maybe appliances and furniture, emergency repairs
Purchasing a home involves big money. A home mortgage lender is taking a big risk. And as we’re seeing, just because the bank owns the house does not mean they can actually sell it and get their money back if the borrower defaults.
The answer to your question is quite simple: credit history reports how well one has done keeping up with payments on borrowed money. If payment history shows a lot of late or missed payments, then a lender is going to figure that person is likely to stiff them on house payments especially since bankruptcy law says one’s primary residence cannot be taken away.
Everybody wins when you have good credit. You get to sleep at night knowing you don’t have bill collectors pounding on your door, and a lender gets willing to help when financing is needed sooner than you can save up the money.