Buying a home should be something exciting and something that you look forward to, because of the future memories you are going to create in it. Many people however do not feel this way because of financial problems they might face such as declined loans, bad debts, bankruptcy and so on.
Banks always look deeper into your finances before giving you a loan, reason being they want to make sure that their investment in you and your future is safe. If you are perhaps blacklisted and have bad debt the less likely it is that they will approve your loan, however it isn’t impossible to secure a home loan. Make sure you working on clearing your name from negative reports.
Here’s what you could do, contact a debt councilor they might just actually be able to clear your name. There are a lot of financial institutes that focus on organizing home loans and finance for black listed clients. In my opinion these companies are much more helpful then bank, however there is a catch, the interest rates are offered by these companies are very high you might have to take out extra insurance to cover the bond.
Bad debts remain on your credit report for a long while, we talking 7 years! Which sounds horrible, however I would highly recommend that you get yourself a copy of your credit report. Look at all negative entries that have been there for the past 7 years or more. Contact the bureaus and report this to them.
Write a short but brief letter to the credit report agency and verify any incorrect information about your credit payments. If they approve, entries can be removed, however this might take up to 30-45 days. Be patient though, because those few days are way better than having to wait for 7 or so years