Are you self-employed? Or maybe just started a new job? That is why, your debts are all due and you have now tons of late payment records? However, in spite of your bad credit record you still want to get a home loan but you don’t know how and when to start? Well, lucky you because you are in the right place. We will help you in getting your home loan even though your credit score isn’t as good as it should be.

Here are some tips on how to get a home loan with bad credit record:

First tip: Improve your credit score prior to getting a loan

If you think that you don’t need the home loan as soon as possible and you still have an ample amount of time to get fully prepared then it’s best to lay the groundwork for your credit report first. Pay off your existing debts and pay as many as you can so you can request the lenders to remove your late payment records. Try to cut off your spending so you can increase your savings and it will help you build a more trustable financial status. Once you think that you’re out of debts and your savings are already competitive then you can apply for a home loan.

Second Tip: Get a hard money loan

Have you heard about hard money lenders? They are private and non-bank lenders that give out loans to those who need additional help in financing their new homes. Compared to banks and other lenders, hard money lenders give loans without putting too much focus on the credit scores and history of the borrower. Thus and so, if your credit report is still not that good and you’re too excited to get to your new home then getting a hard money loan is your best option. Just make sure that you are capable of handling the higher fees and interest rates. However, they are offering flexible payment terms so surely, you’ll be in good hands.

Third Tip: Borrow money from an individual

If you’re losing hope that your loan requests will be approved then it’s time to go to your third option and this is to borrow money from a private individual. Instead of looking for lenders and other non-bank institutions offering home loans, why not look for a private individual that is willing to lend you the money that you need. This person can be your parents, friends, relatives, colleagues or anyone who trusts you enough to lend you money even without looking at your credit report. This option is crucial but once you get someone to help you, you can save a lot from fees and other costs that home loan lenders usually charge the borrowers.