They will also look at the big picture of your credit score over time, and the current score to determine for themselves the best decision for you. The credit score is a small piece of the puzzle when it comes to determining whether to lend you money. It’s not the only thing they consider, and not the most important thing.

You’re concerned that the bank may reject your application for a negative credit house loan. Like most people, you’ve always wanted to buy a house, so you’ve been saving and saving and have a large down payment. The only issue today is that you were in that accident a few years ago, were injured, and were unable to work for three months. You fell behind on your payments, and your credit score suffered as a result.

It’s logical that you’d be afraid or frightened that the bank might have a credit score issue. I mean, isn’t that what they look at when deciding whether to lend someone money? But don’t worry, that’s not the end of it.

No, I’m not playing with your emotions. Listen. Not only will the bank check your credit score when deciding whether to lend you money. First, they will inquire about the small blip on your credit record. They will take your explanation into consideration and give you the benefit of the doubt throughout the deciding step of the loan process if it is logical and legitimate.

Believe it or not, the finest thing you did for yourself was saving your down payment. Yes, your credit score is low, but because you have a large down payment, the bank will view you and may even reduce the interest rate you pay by a point or two.

You would have a harder time borrowing the rest of the money if you hadn’t saved that down payment, but even if you don’t have one, acquiring a negative credit home mortgage isn’t as difficult as it appears.

You will also do yourself a favor if you have been at your same job for at least a year. Several years at the same position is better but the bank will see one year and be encouraged that you tend to hang on to jobs and are not irresponsible when it comes to your financial obligations. 

If necessary, your lender can persuade the seller to hold a note on a part of the loan, say $10,000, as if it were a second mortgage. You make monthly payments and even agree on a two-year balloon payment. But, this is not set in stone because you should be able to refinance the small loan during the two-year timeframe.

If your credit score isn’t excellent, you’ll almost have to pay a higher interest rate. Yet, given the current state of the economy, even a “terrible rate” isn’t all that horrible right now.

Presenting enough positive features to outweigh the negative impact on your credit should be enough to get a bad credit house mortgage approved.