You’re interested in buying a home but concerned that your bad credit will hold you back. This has been and always will be a concern of many people shopping for a home.

While it’s not the ideal situation, there are many steps you can take to get a mortgage with bad credit. Here’s what you need to do:

1. Increase Your Down Payment

The more money you put down, the less of a risk the lender is taking. At a minimum try to save 20 percent for a down payment.

Not only does this make you more appealing as a borrower, but it also allows you to avoid private mortgage insurance.

2. Shop Around

Don’t assume that one lender is the same as the next. Shop around to better understand what several lenders have to offer someone in your shoes.

Some lenders are more likely to do business with a buyer with bad credit.

Tip: a mortgage broker can connect with you bad credit mortgage lenders. This saves you from having to do all the work yourself.

3. Know Your Income and Expenses

Before you do anything — such as applying for a mortgage or even visiting homes in person — be sure that you have a clear understanding of both your income and expenses.

Lenders look at both of these things, as they want a clear idea of your debt to income ratio.

4. Take Care of Past Due Debts

Do you have credit card payments that are past due? Outstanding utility bills? A car that you haven’t paid on over the last couple of months?

If you have any past due dates — no matter how big or small — take care of them as quickly as you can.

The damage has been done to your credit score, but now’s the time to start your recovery.

5. Remain Patient

Qualifying for a mortgage with good credit is difficult enough. If you have bad credit, it can take even more time.

Remain patient as you contact lenders, share information, and move through the pre-approval process.

It may take longer than expected, but that’s okay. What matters most is that you find a bank that’s willing to lend you the money you need to purchase your dream home.

Final Thoughts

As fun as it may be, buying a home is easier said than done. Even if you have an excellent credit score, you’re likely to run into issues along the way.

If bad credit is taking its toll on your search, use the tips above to your advantage. You will soon find yourself inching closer to your goal of home ownership.