Being a homeowner is something that features greatly in the dreams and life plans of most people. And, while there are millions of homeowners out there, there remain millions of others who must either rent a place to live or who choose to live with family and friends.

Among those who do not yet have a house of their own, many of them actually have the available cash flow to afford a monthly mortgage payment. In fact, the only thing that is stopping these people from qualifying for a loan is their credit score.

It is a fact that having a low credit score can get in the way of a person qualifying for a mortgage loan at a reasonable interest rate. In fact, your credit score is probably the most important factor regarding your creditworthiness that banks and other mortgage lenders look at when considering you for a new mortgage loan.

If you are looking for a bad-credit mortgage lender, here is how to find a lender in 5 steps:

1. Choose a home in the appropriate price range:

Human nature is to want more than we can afford. We all do it. But, if you can find a home that is in the lower end of your target price range and you can live with it for now, go with it. The lower home price tag means a lower mortgage loan, leading to a better chance of acceptance with any lender.

2. Find as much down payment cash as you can:

Next, scrape together as much money as you can for a down payment. As mentioned above, a lower loan amount will
increase your chances of loan acceptance and also potentially lead to a lower interest rate. Also, lenders take it as a sign of creditworthiness and good faith if you can come up with a sizable down payment.

3. Research your FICO score:

It is always a good idea before you apply online or walk into the front door of a mortgage lender to know your FICO (credit) score ahead of time. Note that your score may vary a bit from one major credit reporting agency to the next, so research your score with all three of the major agencies.

4. Pull together your important financial documents:

The lender(s) you work with will at some point ask you to show documentation for important items like income, bank statements, and employment history. Do yourself a favor and pull together that information now. In particular, find your W2/1099 forms, pay stubs, and bank statements and be ready to submit them when requested.

5. Build a list of and apply to more than 3 bad-credit mortgage lenders:

Not all mortgage loan lenders are created equal. Put together a list of at least 3 bad-credit mortgage lenders. These lenders are experts are looking at all aspects of your financial history in more detail than most lenders, who primarily focus on your credit score as the sole determining factor in your loan acceptance. Bad-credit lenders take a more sophisticated approach to evaluating you as a borrower, yielding higher acceptance rates for bad-credit individuals.

Take these 5 steps to finding and selecting a bad-credit mortgage that will give you the best-possible deal on a loan.