Home Mortgage Loans After Bankruptcy Can You Get Approved For A Home

Home Mortgage Loans After Bankruptcy Can You Get Approved For A Home Loan

Home Mortgage Loans After Bankruptcy – Can you​ Get Approved For a​ Home Loan?
After a​ bankruptcy,​ you​ can get approved for a​ home loan .​
Just be prepared to​ pay several points above conventional rates .​
However,​ if​ you​ have a​ large down payment or​ wait two years,​ your mortgage rates will improve to​ near conventional rates.
Dealing With a​ Past Bankruptcy on​ Your Credit Report
A bankruptcy will stay on​ your credit report for seven to​ ten years .​
However,​ it​ stops affecting your credit significantly after two years .​
So if​ you​ have established other good credit habits,​ you​ can qualify for market rates in​ no time.
But before you​ shrug off your bankruptcy,​ check your credit report to​ be sure that all accounts that were part of​ your bankruptcy are discharged .​
It’s not uncommon for paperwork to​ not get processed,​ leaving a​ negative mark on​ your report.
Other Helpful Factors
A down payment of​ 20% is​ expected for conventional rates with a​ traditional loan .​
Anything less and you​ will have to​ either pay a​ point or​ more at​ closing or​ additional loan interest .​
The same is​ true with sub prime loans .​
However,​ larger down payments decrease your rates.
Significant cash reserves and a​ large income can also offset your credit risk .​
The amount you​ want to​ borrow is​ also a​ factor .​
The lower your debt to​ income ratio,​ the​ better score you​ will get.
It’s also important to​ remember that not all lenders will treat your application the​ same .​
So it’s important to​ shop around for the​ right mortgage with the​ right terms.
Shopping Mortgage Lenders
If it​ has been less than two years after your bankruptcy or​ you​ know you​ have poor credit,​ start shopping with a​ sub prime lender .​
They deal primarily with people who have adverse credit .​
They can also offer you​ a​ lot more options than a​ traditional lender.
For instance,​ sub prime lenders have easier terms to​ qualify for a​ zero down mortgage .​
You can also opt for a​ future refinance with your mortgage when your credit score improves.
Remember that you​ have many financing options for a​ mortgage,​ even with a​ bankruptcy in​ your past.

You Might Also Like:

No comments:

Powered by Blogger.