Home ownership is possible for almost anyone--even folks with bad credit! However, if you have a low credit score, you may have to find a lender willing to work with your special circumstances. Fortunately, there are plenty who will help you qualify for a home loan. Be wary, however, because there are scammers and unscrupulous lenders who might also try to take advantage of your situation. As you search for a home loan lender, be sure to watch out for:

EXCESSIVE FEES

Every home loan borrower has to pay various fees and closing costs on their mortgage. However, bad credit means you have fewer choices when it comes to lenders, and some unscrupulous loan companies may try to charge you excessive fees since they know your options are limited. Watch out for any lender that tacks on unusual charges to your loan, especially if the amount of the charges seems extraordinarily high. Compare fees among different lenders to see what's standard, and you'll be able to automatically pick out a loan company that's inflating their cost.

UNUSUAL TERMS

Maybe the lender says just one late payment is all it takes for your loan to go into default. Or perhaps he threatens you with a higher rate unless you accept his loan terms. Watch out for any unusual conditions attached to your home loan, especially if it means higher costs for you. Even bad credit borrowers are protected against predatory lending tactics, so never feel as if you have to settle for strange or unfair terms on your loan.

BAD CUSTOMER SERVICE

Some less-than-reputable lenders specialize in bad credit loans--because they think they don't have to offer great customer service. Be wary of any lender who doesn't return phone calls or emails. Your questions and concerns should be addressed in a timely, courteous manner. No matter what your credit history, you should be treated with respect and dignity since you are the customer. Here is a list of recommended Home Mortgage Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.

Fortunately, there are plenty of reputable home loan lenders who are willing to work with folks who have bad credit. Just remember to watch out for scammers, since they often prey on folks who need a little extra help qualifying for a loan.

ABC Loan Guide has a list of mortgage lenders you can trust if you are Buying a Home with Bad Credit. Also, check out our suggested Credit Repair Tips as well.