The easiest way to get cash after a bankruptcy is to take out a second mortgage loan. You can get a mortgage from online sub prime lenders as soon as your bankruptcy is over. But if you want rates that are close to normal, you should wait two years and build a good credit history.
Bankruptcy And Sub Prime Lenders
Every year, millions of people file for bankruptcy because of things like losing their jobs or getting sick. Subprime lenders know this and are willing to lend to people in this situation.
Subprime lenders can help almost anyone get a loan because they specialise in high-risk loans with strange terms. Legit lenders will have rates that are competitive and closing costs that are fair.
What Does Bankruptcy Do to Your Second Mortgage Rates?
Your credit score will be the worst for the first two years after a bankruptcy. After you file for bankruptcy, you will be able to get "E" class loans, which have the highest rates.
With a "C" class loan, you can get better rates after a year of good credit. Most of the time, the rates are 3 to 5 percent higher than normal rates. And in two years, you might have built up a good credit score and be able to get the best mortgage rates.
Your mortgage rates are also affected by other things. Your credit score could go up if you keep a large amount of your home's equity and cash assets.
Compare prices to get the best deal
No matter when you decide to get a second mortgage, you should compare loan rates from different lenders before choosing one. Each company that gives loans has its own way of figuring out rates and closing costs. If you look carefully at loan estimates, you can make sure you get the best rates and fees.
Start with a mortgage broker site if you don't know who you want to borrow from. They work with a number of other businesses to come up with special deals. From there, you can look for more lenders by going to their websites.
When you look at rates, make sure that they include the closing costs. Some lenders will only give you low rates if you pay them a lot of money up front. If you want to pay as little as possible in loan processing fees, you might also want to think about a home equity line of credit.
