Many individuals can get home loans with lousy credit. The problem is can they keep the home. If you have bad credit and did not pay off previous creditors. Than why would you want to purchase a home that you may not be able to afford. Many lenders will approve you for a loan with a high interest rate. Most of the rates are high because of previous payment history. Why not work on getting your previous payments in order. Before apply for a home loan. It is fairly simple. If you order your credit report online at www.annualcreditreport.com you can get all three of your credit reports. Take your time and evaluate your payment history. If you still have unpaid collection accounts why not pay them off. Many times after you have purchased a home previous creditors may come after you and put a lien on your property. They may try and garnish your wages and sweep your bank accounts.

Many people have the tendancy to purchase a home before they actually develop a budget and have (6) six months of mortgage payments set aside. If you loose your job, get sick or a spouse dies can you afford your mortgage payment on your income alone? These are serious questions that you should ask yourself. Prior to buying a home. Think about what will happen in the future. Do you want to end up in foreclosure like thousands of others? A home is major purchase, it is life changing and will be with you for many years. You cannot pack up and move overnight!