Title:
Mortgage After
Bankruptcy: These Steps Could Help
Word Count:
926
Summary:
"Mortgage
After Bankruptcy" Article: This article looks at specific steps an
individual can take to increase their chances of qualifying for a mortgage
after bankruptcy.
Keywords:
mortgage after
bankruptcy, bankruptcy mortgage, credit after bankruptcy, bankruptcy,
bankruptcy home loan, after bankrupty, bankruptcy loan, dismissed bankruptcy,
discharged bankruptcy
Article Body:
If you want to
increase your chances of qualifying for a mortgage after bankruptcy, here are
some steps you can take:
First, if you plan to apply for a mortgage after bankruptcy, you will want to
have any inaccurate or obsolete negative information on your credit reports
corrected or removed. This can help increase your credit score.
Also, you will want to establish some new accounts, and pay them in a timely
manner over time. If you've paid the accounts on time for about 18-24 months
since your bankruptcy, this should help rebuild your credit - which can be a
plus when applying for a mortgage after bankruptcy.
Next, you will want to work with an experienced mortgage broker. Why? Because
buying a home is probably going to be one of the biggest investments you'll
make. You will want to have an experienced professional guiding you through the
lending process - especially when it comes to applying for a mortgage after
bankruptcy.
A mortgage broker typically has access to dozens of lenders and will probably
have a good idea of which ones will (and will not) approve you for a mortgage
after bankruptcy. In addition, they will be able to tell you what to expect in
terms of the financing process.
So how do you find a mortgage broker? One way is to to ask friends or real
estate agents for a referral. Once you have a few names, set up an appointment
to interview each mortgage broker.
Among other questions, you will want to know if they have successfully been
able to get other individuals a mortgage after bankruptcy. You also want to
make sure they are licensed.
Another question you will want to ask is what type mortgage loan (A, B, C, or
D) the mortgage broker thinks you can qualify for. Why? The lower the grade of
the loan, the higher the interest rate. This is an important consideration when
applying for a mortgage after bankruptcy.
In addition, there are other important questions you will want to ask a
potential mortgage brokers - ones that could help you save money and/or
increase your chances of qualifying for a mortgage after bankruptcy. While
there isn't enough room to cover them here, I go into detail on them in After
Bankruptcy Credit Solutions.
Also make a point to bring your financial information with you when you meet
with a mortgage broker. For example, you should have your income and expenses
available as this will help the broker determine the loan amount you may be
able to qualify for when it comes to a mortgage after bankruptcy.
Generally speaking, most lenders will allow you to get a home loan with a
payment of up to 28% of your gross income. So if you make $4,000 per month,
that would be $1,120. But keep in mind that this just an example. Again, a good
mortgage broker can explain the criteria that each lender has.
If you have copies of your credit reports from each of the major credit
reporting agencies (Experian, Equifax, and Trans Union) this will help also.
Your credit report will play a major role when it comes to qualifying for
mortgage after bankruptcy.
On that note, if you want to increase your chances of qualifying for a mortgage
after bankruptcy, make sure that any inaccurate or obsolete negative
information is removed from your credit report. This is important for two
reasons: (1) It can mean the difference between qualifying or not qualifying
for a mortgage after bankruptcy, and (2) if you end up qualifying for mortgage
after bankruptcy, any inaccurate or obsolete negative information on your
credit report could cost you up to $1,000s or even $10,000s in additional
interest.
How do remove any inaccurate or negative information from your credit report,
so you can improve your chances of qualifying for a mortgage after bankruptcy?
There are specific steps you need to take. While I cover them in After
Bankruptcy Credit Solutions, there is not enough room to go into detail here.
Just remember that ideally you want rebuild your credit history before applying
for a mortgage after bankruptcy.
By the way if you think that removing inaccurate or negative information from
your credit reports takes a long time, I have good news. There is a way to have
it removed in as little as 72 hours - the service is typically not available
directly to consumers. In After Bankruptcy Credit Solutions I show you how to
find this type service if you are trying to qualify for a mortgage after bankruptcy.
In this article we touched on two important steps you can take if you plan on
applying for a mortgage after bankruptcy: Correcting or removing any inaccurate
or obsolete negative information from your credit reports, and finding a
mortgage broker to guide you through the lending process.
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