Here are some things you can do to make it more likely that you can get a mortgage after bankruptcy:
First, if you want to apply for a mortgage after bankruptcy, you should have any negative information on your credit report that is wrong or out of date fixed or taken off. This can help your credit score go up.
You will also need to open some new accounts and pay them on time over time. If you've paid your bills on time for 18 to 24 months after filing for bankruptcy, this should help you rebuild your credit, which can be helpful if you want to get a mortgage.
Next, you will want to work with a mortgage broker who has a lot of experience. Why? Because buying a home is likely to be one of the biggest investments you'll make. You will want an experienced professional to help you through the lending process, especially if you are trying to get a mortgage after filing for bankruptcy.
A mortgage broker usually has access to dozens of lenders and will likely know which ones will give you a mortgage after bankruptcy and which ones won't. They will also be able to tell you what to expect when it comes to getting the money.
So, how do you find a broker for a mortgage? One way is to get a recommendation from friends or real estate agents. Set up interviews with each mortgage broker once you have a few names.
You will want to know, among other things, if they have helped other people who had gone through bankruptcy get a mortgage. You should also check to see if they have a licence.
You should also ask the mortgage broker what kind of mortgage loan (A, B, C, or D) he or she thinks you can get. Why? The interest rate on a loan goes up as its grade goes down. When applying for a mortgage after bankruptcy, this is a very important thing to think about.
You should also ask a potential mortgage broker a few other important questions. These questions could help you save money or improve your chances of getting a mortgage after bankruptcy. Even though I can't talk about them in detail here, I do in After Bankruptcy Credit Solutions.
Also, when you meet with a mortgage broker, don't forget to bring your financial information. For example, if you want a mortgage after bankruptcy, you should have your income and expenses ready. This will help the broker figure out how much of a loan you may be able to get.
Most lenders will give you a home loan if your payment is no more than 28 percent of your gross income. So, if you make $4,000 a month, that would be $1,120. But remember that this is only one example. Again, a good mortgage broker can tell you what each lender's requirements are.
If you have copies of your credit reports from Experian, Equifax, and Trans Union, that will also help. When it comes to getting a mortgage after bankruptcy, your credit report will be a big part of the process.
Also, if you want to increase your chances of getting a mortgage after bankruptcy, make sure that any negative information on your credit report that is wrong or out of date is taken off. Two things make this important: (1) It can make the difference between getting a mortgage after bankruptcy and not getting one. (2) If you do get a mortgage after bankruptcy, any wrong or old negative information on your credit report could cost you thousands or even tens of thousands of dollars in extra interest.
How do you get rid of any wrong or bad information on your credit report so that you have a better chance of getting a mortgage after bankruptcy? There are certain things you have to do. Even though I talk about them in After Bankruptcy Credit Solutions, I can't go into more detail here. Just keep in mind that you should try to rebuild your credit before applying for a mortgage after bankruptcy.
By the way, if you think it takes a long time to get wrong or bad information off your credit report, I have good news. There is a way to get it gone in as little as 72 hours, but most people don't have direct access to the service. In After Bankruptcy Credit Solutions, I explain how to find this kind of service if you want to get a mortgage after filing for bankruptcy.
In this article, we talked about two important steps you can take if you want to get a mortgage after bankruptcy: correcting or removing any inaccurate or old negative information from your credit reports and finding a mortgage broker to help you through the lending process.
