Mortgage After Bankruptcy: These Steps Could Help

If you want to increase your chances of qualifyingexplain the criteria that each lender has.
for a mortgage after bankruptcy, here are someIf you have copies of your credit reports from each
steps you can take:of the major credit reporting agencies (Experian,
First, if you plan to apply for a mortgage afterEquifax, and Trans Union) this will help also. Your
bankruptcy, you will want to have any inaccurate orcredit report will play a major role when it comes to
obsolete negative information on your credit reportsqualifying for mortgage after bankruptcy.
corrected or removed. This can help increase yourOn that note, if you want to increase your chances
credit score.of qualifying for a mortgage after bankruptcy, make
Also, you will want to establish some new accounts,sure that any inaccurate or obsolete negative
and pay them in a timely manner over time. If you'veinformation is removed from your credit report. This
paid the accounts on time for about 18-24 monthsis important for two reasons: (1) It can mean the
since your bankruptcy, this should help rebuild yourdifference between qualifying or not qualifying for a
credit - which can be a plus when applying for amortgage after bankruptcy, and (2) if you end up
mortgage after bankruptcy.qualifying for mortgage after bankruptcy, any
Next, you will want to work with an experiencedinaccurate or obsolete negative information on your
mortgage broker. Why? Because buying a home iscredit report could cost you up to $1,000s or even
probably going to be one of the biggest investments$10,000s in additional interest.
you'll make. You will want to have an experiencedHow do remove any inaccurate or negative
professional guiding you through the lending process -information from your credit report, so you can
especially when it comes to applying for a mortgageimprove your chances of qualifying for a mortgage
after bankruptcy.after bankruptcy? There are specific steps you need
A mortgage broker typically has access to dozens ofto take. While I cover them in After Bankruptcy
lenders and will probably have a good idea of whichCredit Solutions, there is not enough room to go into
ones will (and will not) approve you for a mortgagedetail here. Just remember that ideally you want
after bankruptcy. In addition, they will be able to tellrebuild your credit history before applying for a
you what to expect in terms of the financingmortgage after bankruptcy.
process.By the way if you think that removing inaccurate or
So how do you find a mortgage broker? One way isnegative information from your credit reports takes a
to to ask friends or real estate agents for a referral.long time, I have good news. There is a way to have
Once you have a few names, set up an appointmentit removed in as little as 72 hours - the service is
to interview each mortgage broker.typically not available directly to consumers. In After
Among other questions, you will want to know ifBankruptcy Credit Solutions I show you how to find
they have successfully been able to get otherthis type service if you are trying to qualify for a
individuals a mortgage after bankruptcy. You alsomortgage after bankruptcy.
want to make sure they are licensed.In this article we touched on two important steps
Another question you will want to ask is what typeyou can take if you plan on applying for a mortgage
mortgage loan (A, B, C, or D) the mortgage brokerafter bankruptcy: Correcting or removing any
thinks you can qualify for. Why? The lower the gradeinaccurate or obsolete negative information from
of the loan, the higher the interest rate. This is anyour credit reports, and finding a mortgage broker to
important consideration when applying for aguide you through the lending process.
mortgage after bankruptcy.Copyright © 2006 Innovative Solutions
In addition, there are other important questions youPublishing, Inc. All rights reserved.
will want to ask a potential mortgage brokers - onesThe company and product/service names referenced
that could help you save money and/or increase yourin this article are the trademarks, registered
chances of qualifying for a mortgage aftertrademarks or service marks of their respective
bankruptcy. While there isn't enough room to coverowners. None of the owners have sponsored or
them here, I go into detail on them in Afterendorsed this article.
Bankruptcy Credit Solutions.DISCLAIMER:
Also make a point to bring your financial informationThis information is designed to provide only a general
with you when you meet with a mortgage broker.overview of the subject matter herein.
For example, you should have your income andThis information is provided with the understanding
expenses available as this will help the brokerthat neither the publisher nor author is engaged in
determine the loan amount you may be able torendering legal, accounting or other professional
qualify for when it comes to a mortgage afteradvice. If legal or other expert assistance is required,
bankruptcy.the services of a professional should be sought.
Generally speaking, most lenders will allow you to getNeither the publisher nor author shall be liable for any
a home loan with a payment of up to 28% of yourloss or damages, including but not limited to special,
gross income. So if you make $4,000 per month,consequential, incidental or other damages, caused by
that would be $1,120. But keep in mind that this justthe information contained herein.
an example. Again, a good mortgage broker can