Make Sure That Your Mortgage Application Will Be a Success after Bankruptcy

Alright, so you’ve been through bankruptcy. But you have been discharged and now you’re ready to start all over. Now, you intend to purchase a home for you and your family. How can you make sure that your mortgage application will be a successful one after bankruptcy? Here are some valuable suggestions you may want to consider:

 

MortgageCloudHave you gotten past the 2 Year mark?

Even if you have already been discharged from bankruptcy, it is advisable to wait until you get past the 2 year mark from the date of your bankruptcy dismissal. This will give you a chance to get settled with your finances. Within this 2-year time, you may have already secured a stable job, opened up new accounts with banks or credit card companies, started on your savings, and made other preparations before applying for mortgage loan.

 

Compare Various Lenders.

Don’t just focus on one lending company. Explore your options. There are so many lending companies in the market who are willing to provide a mortgage loan for those who have been through a bankruptcy. Just because you’re applying for a sub prime mortgage does not mean you will have to settle for unreasonably high fees. Compare the charges of various lending companies and choose the one that has the most reasonable offer.

Does the mortgage loan require a prepayment penalty?

Like the above suggestion, compare different offers. Don’t forget to inquire about the prepayment policy of the lending company. If you’re going to submit a prepayment, will you be subjected to pay a penalty? If yes, then how much? Remember, you don’t want to accept a mortgage loan that has high interest rates and that requires you to pay a prepayment penalty for two years. There are lending companies out there with more reasonable terms.

Save for the down payment.

Be prepared to give a down payment. Since you have filed for bankruptcy before, creditors expectedly see you as a high risk borrower. They may check on the present status of your credit, your income stability, your employment history and other details affecting your credit worthiness. Aside from this, expect that you will be requested to put down at least 2-5 % of payment before your mortgage application is granted. This down payment will be based upon the purchase price of the house you intend to buy.

 

Ask help from a bankruptcy mortgage broker.

If you do not know much about how mortgage loans work, it may be better to ask help from a reliable bankruptcy mortgage broker. He can show you what options you have and which offers are reasonable enough for you to accept. A bankruptcy mortgage broker can also give some advice on how to deal with your monthly mortgage loan more effectively. Just make sure that the mortgage broker you will be dealing with is a legitimate one. More importantly, a bankruptcy mortgage broker should not be charging you an expensive professional fee.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

We will be happy to hear your thoughts

Leave a reply

NHBS Inc © 2024

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

Business Loans

Consumer Loans

New Horizon
Logo
Enable registration in settings - general