Mortgage After Bankruptcy: These Steps Could Help

by R. Lawrence Anderson

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.

Copyright © 2006 Innovative Solutions Publishing, Inc. All rights reserved.

The company and product/service names referenced in this article are the trademarks, registered trademarks or service marks of their respective owners. None of the owners have sponsored or endorsed this article.

DISCLAIMER:

This information is designed to provide only a general overview of the subject matter herein.

This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.

Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.

R. Lawrence Anderson is the author of After Bankruptcy Credit Solutions which shows individuals how to qualify for credit & loans after bankruptcy. For more information visit: http://www.bankruptcy-credit-solutions.com.

For more News, Articles, Guides, Tips, Tricks and various Mortgage And Loan Products information... visit our site at http://www.mortgage-and-loan-info.com.

Can I Get A Mortgage After Filing Bankruptcy

by Nikola Govorko

Usual opinion is that with an item like bankruptcy on your credit report you do not stand a chance of getting a mortgage. While it might have been true until as little as 4 - 5 years ago it is certainly not true today.

It is natural that bankruptcy does not help your credit score but it is not something that can prevent you from buying your own home in near future, in say next 2 to 5 years.

And in case that you already have a mortgage on your record, you will be happy to know that you can refinance your mortgage and get a much better deal which can enable you to pay off your creditors much easier and faster. You will have to work long, hard and smart to repair your credit rating.

Here are steps you will have to take in order to get a mortgage after filing for bankruptcy:

1. Make a budget that you can stick to and the one your family can live with. It is very important to make a realistic list of your monthly income.

In this list include any income that you can count on100%, leave all the other possible money sources out. You can do it easy with a pen and paper or you can use your PC/Mac.

Place any other possible sources of income on a separate list, so if it happens OK, if it does not no harm done to your budget planning.

2. List your expenses include all your monthly bills in this like car or a home loan, rent, insurance payment, utilities and food. Keep ALL the bills, and at the end of the month you should have much clearer picture where does your money go to.

Many people do not do this, and that is a HUGE mistake. Small $10-20 bills soon ad up without you noticing it. It is not big expenses that push people in debt, in most cases it is lots of small charges you do not take notice off until you have to pay them.
You have gathered similar information before, probably when filling for bankruptcy. At the end of the month or at the beginning of one, when you do the math you will be able to find out if you are living above your means.

If that is the case you are just going to have to give up some of the unnecessary costs. What that is I can not tell you, each of us is different but usually things like cigarettes, bar bills, DVD rents and other entertainment oriented expenses are not necessary for living normal lives.

You would be surprised to know how much you can save on things like this.

3. Pay ALL your bills ON TIME importance of this can not be stressed enough. If you follow above two steps you should have less trouble with this probably the most important step in your credit repair.

Make sure to have your mortgage, car loan, or a secure credit card bill (that you have naturally been paying on time) listed with credit bureaus.

It will provide the proof your creditors need that you have been working hard on your credit repair and that you have learned how to live within your means.

4. Fourth step is optional; you can apply for a mortgage after bankruptcy even with bankruptcy discharged yesterday and just about any time you want.

But even if you are approved you will have much higher interest rates to payback and those rates can be just thing that will push you even more towards financial bottom.

If not absolutely necessary wait for at least a year (during which you will naturally working harder then ever to improve your credit score) and then apply. Also make sure to check all your options, apply online with reputable lenders and get as many offers as you can right to your e-mail.

This is much, much easier, faster and over all better way to apply for any kind of a loan then the traditional methods.

So can you and should you apply for mortgage after filing bankruptcy? The answer to both questions is YES. But you will have to undertake above steps to get a better deal.

At www.Debt-Free-Family.com we are dedicated to help regular people get out of debt, avoid bankruptcy and enjoy a debt free life. Get easy 4 step tutorial how to get Mortgage After Bankruptcy

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