Your credit rating is the most influential guide to lenders processing your loan request. As the most reliable way of determining your likelihood of repaying a loan, your credit rating can help—or hinder—your ability to get a mortgage. However, even those with questionable credit can get a mortgage.

Where do I go?

Don’t be afraid to start with three or four “normal” lenders. If can’t get approved—or find their rates too high—then it’s time to consult with some “sub-prime” lenders. Sub-prime lenders specialize in taking on higher-risk loans, and will be more likely to work with you.

Now what?

Don’t think that you should be grateful to anyone who offers you a loan in spite of your bad credit. Just as you would normally compare the interest rates, terms, and closing costs of any normal lender, make sure and do the same with sub-prime lenders. Don’t choose a lender until after you compare the rates of at least three lenders! Remember, you aren’t going to really know if you’re getting a good interest rate unless you shop around.

Be cautious.

It’s sad, but some unscrupulous lenders prey on borrowers with bad credit. It’s up to you to ensure that you don’t become a victim. Did the lender only ask you to provide a social security number and your income level? If so, then move on. Remember, having bad credit doesn’t make the process of getting a loan much different than it would normally. Put simply, if something seems too good to be true, it probably is.

Also, make sure to look for any unnecessary fees or costs that lenders may tack on to your loan. Do they seem fishy? Request a detailed itemization of any additional costs and fees so that pushy loan officers don’t confuse you.

Look ahead.

Your credit rating is constantly changing. The more of a positive payment history you accumulate, the better your score will be. Pay your mortgage on time and do your best to repair any other credit issues you may have so that you may improve your score.

Refinance!

Getting a bad-credit is a great way for people with questionable credit to purchase a home. However, you can always refinance your higher-interest loan for a better one when your credit improves.

With so many sub-prime lenders, it’s easier than ever before for those with bad credit to get a mortgage. And never has there been a better way for people with bad credit to reestablish their financial responsibilities.