Three quick steps to get a mortgage after bankruptcy
Find a mortgage after bankruptcy is much easier today than it used to be. After having declared bankruptcy and clean your credit, you may qualify for a mortgage at a reasonable rate. To obtain the best possible price, you will need to get their finances in order and be able to pay a large down payment.
First step: given sufficient time
Most lenders prefer that there have been at least two years since the bankruptcy has been filed. If you have paid all their assessed contributions on time, since filing for bankruptcy, and they have waited two years, it will most likely be able to get full financing for your home. If you want to get a mortgage before the end of the two years that is a little more difficult, but it can be done. You will need to have a long history of payments since filing for bankruptcy, and will have to have a down payment that varies between three and five per cent of the loan for approval. You may also have to deal with less than suitable interest rates.
Second step: clean your credit
To reduce rates as much as possible can be a good idea get a credit card and use it for an amount that can regularly pay each month. This will show lenders that you are now able to keep up with the payments. This will also help improve your credit score. You may also want to consider the establishment of an appointment with a credit counselor and what is a point of saying to your lender that you have taken the measures necessary to help out of its debt problem. credit counseling agencies that are affiliated with the National Foundation for credit counseling are very respected. That should fix the main source of their money problems, lenders do not will help obtain a mortgage if this is not done. Pay the rent on time, and if necessary, obtain a receipt of each payment date. If you do this for two years is strong evidence to the lenders that you have to pay your mortgage payment.
Step three: saving for the down payment
After attending your bankruptcy payments, save for a down payment, it must be its next priority. If they are not able to qualify for a mortgage loan, since they have no money for a down payment, another option is find a program of assistance down payment. There are numerous payment assistance programs, but the two largest are gold district and Nehemiah programs. Many people consider that borrow money to relatives to make the initial payment, but will have to talk with the lender before doing this because some are strict about where is the down payment money comes.
If you follow these three steps you will be in a very good position for a mortgage, perhaps even better than some people who have never declared bankruptcy. Just remember, that sometimes bankruptcy is necessary and many lenders are willing to help people who show that they have their finances under control.