If you want to buy a home after filing for bankruptcy, this article will help you.
Buying a home is likely the most expensive thing you will ever buy. When you have a bankruptcy on your credit report, it makes things harder.
If you've read my book After Bankruptcy Credit Solutions, you know that many people who have been bankrupt apply for credit and loans in the wrong way.
If you make a mistake in this area, you could end up paying $10,000 more in interest and other fees. Here's a good example:
You find the house you've been looking for, and the price the seller wants is fair. So, you ask for a $250,000 loan over 30 years to buy the house.
You have to fill out a mountain of paperwork, with places to sign, initial, sign, etc. Then, not long after that, the lender calls to tell you the good news: you're approved!
Don't open the champagne bottle just yet, though. You were okayed, but at what price?
At 8%, you could get a loan for $250,000 over 30 years. That means that you'll pay $410,388.12 in interest over the life of the loan.
What if you could take certain steps to improve your credit score and shop for loans, which would lower your interest rate by 1%? If you did that, you would end up paying interest of $348,772.12.
The difference of 1 percent is $61,615.87! If you could have done that by taking some very specific steps, you would have had EXTRA money.
What does this example show? When it comes to buying a home, you just can't afford to make a mistake.
Here's the RIGHT way to do it:
First of all, if there was ever a time when you needed to improve your credit score before looking for a loan, this is probably it.
You want to raise your credit score, right? By the way, if you need a loan quickly and need to improve your credit score, there is a way to do it in as little as 72 hours!
Next, you should work with a mortgage broker. If you have been bankrupt, they can be very helpful. But not just any mortgage broker will do.
You should talk to a few people and ask them very specific questions. It's very important that you work with the RIGHT mortgage broker.
A good mortgage broker will have access to a number of lenders and will know which one is best for you. They will also be able to show you how the loan approval process works from start to finish.
You shouldn't look for a home until you know how you're going to pay for it. You'll want to talk to more than one real estate agent, though.
But what happens if you can't get a traditional loan? Don't be afraid! If you can't get a traditional mortgage, you can use a number of other ways to buy a home.
With one of the strategies, you can qualify even if you have bad credit or are unemployed.
