Applying for a home loan with poor credit can be a hectic time. Several lenders will not consider your application, and the ones that do may charge excessive fees and rates. Even with bad credit, you can get quickly approved for a home loan, and possibly receive a lower rate on the mortgage. It is worthwhile to learn about the mortgage process and do everything in your power to make credit improvements.

1. Don't Falsify Loan Documents: Some mortgage brokers encourage bad credit borrowers to falsify or exaggerate income and assets on loan applications. This makes the applicant appear more favorable before the mortgage company and increases the chances of loan approval. However, lying on a mortgage loan application is illegal, and it can delay the loan process. Once your application is reviewed, the underwriter may become a little suspicious and request additional documentation or explanations. If you can't supply the information, your application is denied, and you'll have to start the entire process over.

2. Pay Unpaid Bills: If your credit report reveals several missed or unpaid bills, the mortgage company will request that you catch-up on all unpaid bills before the loan is approved. This can delay the mortgage loan for weeks or months. To avoid this drawback, make sure all bills are current before applying for a loan. This will speed the loan process, and quickly add a few points to your credit score.

3. Provide Lender with Written Explanations: After reviewing your credit report, the mortgage lender may inquire about a bankruptcy, judgments, late payments, etc. When submitting your loan information, provide a written statement and explain the circumstances that resulted in a poor credit history. For example, temporary loss of employment or sudden illness can make it difficult to maintain consistent payments. If the situation has been resolved, the lender may be inclined to grant a loan approval.