Your chances of qualifying for a good mortgage loan deal after bankruptcy are very slim and a cause for concern. The terms that you get from the market are not so favourable and this can be frustrating and even stressing. The most important thing for you is being to convince the lender that you are a good borrower. If you have just filed bankruptcy you must know that this is not the end of the road for you, you can still buy that house you have always dreamt of. There are a lot of mortgage lenders who understand your situation and are willing to give you a loan.
Credit repair
This is your first step before you can do anything. This is the first thing that your mortgage lender is going to check when you submit your mortgage application. Your duty is therefore to make sure that you build a good credit record. You will need to pay all your outstanding bills, overdue accounts must also be paid up.
Make sure the credit bureau companies know about the payments that you do so that they can amend your credit report. The process might take up to three years but the most important thing is to increase your credit score. Sometimes credit reports do show errors or some information can be wrong, check out for such errors when you request your credit report and report them to the credit bureau as soon as possible. Once your credit rating improves, you can get cheaper loans by applying for home equity loans or interest only mortgage loans. If you apply for a low rate on your mortgage you could save thousands of dollars.
How long should you wait before you can get a mortgage loan?
Despite the bankruptcy staying on your credit report for up to ten years, it does not mean that you can not qualify for a loan again. The trick is to wait for at least 2 years before you can apply for a mortgage loan. This is because you need enough time to repair your credit during that two year period. it is also the time that you can save some cash for your down payment. There are many ways of saving some money for a down payment, you can open a savings account or acquire saving bonds. You will find that if your down payment is more the lender will charge you less in terms of interest rates.
Tips and comments:
You should also work at improving your credit history by paying of some small loans that you may owe. After bankruptcy no creditor or lender will be allowed to follow up any payment from you directly. This should give you an opportunity to start your life afresh. You need to become responsible and start paying all your creditors on time, all this will also be updated on your credit report. If you prove to lenders that you have changed in as far your financial management is concerned, they will offer you a better deal.
