Home Mortgage Loans After Bankruptcy Financing A Home After Bankruptcy

Home Mortgage Loans After Bankruptcy - Financing a​ Home After Bankruptcy
Financing a​ home after a​ bankruptcy doesn’t have to​ be an​ ordeal .​
When you​ find the​ right lender,​ you​ can secure reasonable rates on​ your mortgage loan .​
You can improve your loan application with time and some cash leverage .​
Depending on​ your financial situation,​ it​ is​ possible to​ get conventional rates with a​ bankruptcy on​ your credit file.
Lenders Who Deal With Past Bankruptcies
With a​ recent bankruptcy,​ you​ can turn to​ sub prime lenders to​ obtain financing for your home .​
As soon as​ your bankruptcy has been finalized by the​ court,​ you​ can apply for a​ home loan .​
Your rates,​ however,​ will be about 12% higher than conventional rates unless you​ have significant cash assets.
After two years,​ conventional lenders will consider your loan application .​
Even though your bankruptcy will remain on​ your file for several years,​ lenders will be more interested in​ your current payment history and debt-to-income ratio.
Tips to​ Improve Your Loan Application
While you​ can’t erase your bankruptcy,​ you​ can improve your loan application to​ qualify for better rates .​
Down payments of​ 20% to​ 50% are the​ easiest way to​ become eligible for lower rates .​
Having cash reserves for two months or​ more will also help.
When it​ comes to​ terms,​ selecting an​ adjustable rate mortgage will help you​ qualify for more and at​ temporarily lower rates .​
Selecting a​ shorter loan period also lowers your rates .​
Furthermore you​ have the​ option of​ buying down your rate with points .​
But you​ may be better served by increasing your down payment and refinancing in​ a​ couple of​ years when your credit improves.
Research Lenders Before you​ Buy
Take some time to​ research loan estimates before you​ select a​ lender .​
It is​ the​ easiest way to​ save thousands on​ your future home loan .​
Make sure that you​ use the​ same numbers and terms when you​ request loan quotes from different financing companies .​
That way you​ will have precise numbers to​ base your decision on.
Once you​ have picked a​ lender,​ the​ hardest part of​ the​ process is​ over .​
In ten minutes or​ less,​ you​ can complete your loan application online .​
Your loan contract will be delivered in​ a​ couple of​ days for your final review with funds soon to​ follow.

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