If you're applying for a new home loan, one of the first items a potential lender will request is your permission to perform a credit check. If your credit history is a bit shaky or downright poor, you might consider the so-called no credit check mortgages. While any legitimate lender will require a credit check at some point, there are many who specialize in helping borrowers with bad credit. They have helped people in your situation find the right home loan at an affordable rate.

First, it's important to understand how your credit score is determined, and how it is used. Typically, the three credit bureaus (TransUnion, Equifax, and Experian) calculate their scores based on a number of key factors including your payment history, the amount of debt you currently owe, the length of time you've carried that debt, and the number of new accounts you hold.

Lenders check all three scores and generally work with an average when assessing your loan application. When opting for no credit check mortgages, you can discuss how the lender uses your credit information. Talking to a loan officer early in the process can save you time, money, and frustration.

The longer your good credit history, the higher your score. The higher your score, the less risk you represent to a potential lender. In general, credit scores range from 340 to 850. Borrowers with higher scores (700+) tend to receive more favorable interest rates. Don't be discouraged if your credit score is not high, however, because today's lenders provide a wide range of loan products, including no credit check mortgages.

Although these lenders still require a check of your credit, they will weigh other factors when evaluating your loan application. If you are able to verify your income with a W-2, deposit receipts, or recent pay stubs, and if you can provide sufficient personal references and certain other documentation, you may qualify for one of the no credit check mortgages. You may not enjoy exactly the same loan options as a borrower with excellent credit, but you can qualify for a home loan that will work for you.

Providing mortgages to borrowers with less-than-perfect credit is actually a profitable arrangement, as the lenders stand to profit from working with people who have been turned down elsewhere. And getting matched with lenders who offer no credit check mortgages is easy, if you know where to look. Try online search engines, mortgage brokers, banks and other institutions, and don't forget personal referrals. Having bad credit won't necessarily prohibit you from finding a loan.

Remember, once you qualify and close the loan, you have an outstanding opportunity to rebuild any credit problems. Honor the lender's strict repayment requirements by making your mortgage payments on time, every time.