Explore Your Financing Options
There's one constant whenever you buy a home. The seller wants to sell it. And the more motivated the seller is, the more likely he agree to help with the financing. Seller financing is an ideal way of buying a home with bad credit. It costs less, can close faster and avoids the usual credit and income checking. Whether you assume a loan, get a second mortgage from the seller or use a lease option, there are numerous ways to use seller financing.

If the seller won't give you any assistance, then it's time to look at conventional lenders. Most people don't buy the first house they see and likewise you shouldn't limit yourself to one lender. There's plenty of mortgage money available for lending. Savings and loans, credit unions, mortgage companies, and banks are all possibilities. You can contact them directly or use a mortgage broker.

While a broker will usually contact more than one loan source for you, don't assume it's necessarily the best deal. Check with sources on your own or with other brokers. Also be aware that a broker will charge a service fee, so be know what it is and that it may be negotiable.

Know the Financing Costs
Whether you're buying a home with bad credit or good credit, you can't compare your financing choices unless you know the costs involved. You'll want to know the:

• Down payment and if private mortgage insurance is required;
• Loan amount;
• Length of loan;
• Interest rate and if it's variable or fixed;
• Point and other fees;
• Monthly payment;