The first thing to do when trying to find a bad credit mortgage is to weed out all the banks and mortgage companies which are not likely to do business with you. It’s very likely that your “neighborhood” banker will not take you seriously, and will give you the following piece of advice, “Save up enough to make a big down payment, and take a few years to clean up your credit then come back and see me.”

Frustrating advice for somebody who wants to buy a home today for that banker believes you are unworthy of being given a loan. The first step in the process is to ignore that person.

There are lenders who specialize in making poor credit mortgages. Compile a list of them and research them. Find out what is required, the costs you are likely to incur, and the number of consumer complaints which have been lodged about them.

Next, find out just how bad your credit really is. Obtain a copy of your credit report and review it in detail. Anything with a credit score of less than 620 is considered bad credit. If there is any item on the report that is questionable, you have the right to dispute it.

These credit agencies are not perfect, they make mistakes, and they are obligated to correct them. To get an incorrect item off of your report, send a signed letter to the agency with your full name, mailing address, date of birth, social security number, name of the creditor and account number, and reason for your disagreement. Request that the item be removed and that you be issued an updated report.

Don’t take a shotgun approach and apply to every mortgage lender you can find. Not only would you run the risk of getting stuck with lots of application fees, each time a credit report is requested, it is recorded on your credit report. Having too many requests in a short period of time is considered a negative. Instead, make a short list of three or four lenders or brokers who you feel comfortable with and start from there.