My credit rating isn’t so good. What do you advise?

One of the most common hurdles to getting a mortgage or refinancing your home can be a less-than-stellar credit rating. But it isn't always a stop sign on the road to homeownership. To overcome this problem, credit counselors advise you to come clean with potential lenders and offer a good explanation. 

Having two or three late payments on your credit report isn't going to stop most lenders. But if you've had a number of 30-day late payments, or you've been more than 60 days late on any payments, or you've defaulted on a loan within the past two years, you need to be ready to do some serious explaining. 

Tell the loan officer about any credit problems when you apply for the loan. By candidly volunteering the information and offering an explanation – perhaps a layoff, unexpected medical bills, divorce, or unanticipated emergency home repairs – the lender may still consider you a good risk. If this approach doesn't work, you might consider using a mortgage broker who specializes in helping poor credit risks Read more....