how to get a mortgage after a bankruptcy discharge
TRANSCRIPT
How to Get a Mortgage After a Bankruptcy Discharge
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How to Get a Mortgage After a Bankruptcy Discharge
Being discharged from bankruptcy does not mean you can never buy a home. It is true that the recent
bankruptcy will reduce your credit rating. However, getting a home loan in fact can be a great way to
rebuild your credit rating. Again, it is important to personally take it upon yourself to be informed about
the best way of getting a mortgage following bankruptcy discharge. We provide six (6) top tips to help you on how you can get a great mortgage deal
even though you have just come out of filing for bankruptcy.
How to Get a Mortgage After a Bankruptcy Discharge
1. Allow some 'grace period' to pass.
After being discharged from bankruptcy, allow at least 2 years to pass before applying for a home
loan. Some banks and other lenders will approve a home loan after 24 hours of being you have been discharged but the interest rates are usually very
high. So put the application off for at least 2 years whilst you focus on rebuilding your credit rating.
How to Get a Mortgage After a Bankruptcy Discharge
2. Restore your credit history.
Get a new line of credit such as a secured credit card from your bank. Talk to your bankers if they can open a checking or savings account through which you can get a secured credit card. There are also auto loans for people with bad credit.
You can use any of these to start rebuilding your credit rating and making as strong as you can.
How to Get a Mortgage After a Bankruptcy Discharge
3. Develop or Strengthen Habits That Build Your Credit History.
The best of these habits is paying your bills on
time. Late payments do not only cost you more money, but it also reduces your credit
score and add more frustration. This will surely dent you from getting your home loan
after being discharged from bankruptcy.
How to Get a Mortgage After a Bankruptcy Discharge
4. Keep a very low debt-to-income ratio.
When you get your secured credit card for example, ensure to pay off the balance. Make small
purchases each month, where you can comfortably pay off the balances every month. If you cannot
pay all the balance each month, pay more than the minimum required. Have little debts as possible. This will only increase your credit score and help
you get the home loan.
How to Get a Mortgage After a Bankruptcy Discharge
5. Start saving for a down payment.
As you build your score, start putting away some money as down payment for your mortgage. Down
payments lower the mortgage interest rates and increases your chances of being granted the loan.
The usual down payment amount is 20% of the purchase price of the loan. If you can save enough
money so that you down payment is more than this, that can only work in your favor.
How to Get a Mortgage After a Bankruptcy Discharge
6. Request no-obligation Mortgage Quotes.
Get at least 3 no-obligation quotes from mortgage lenders. The easiest way of doing this is to go to a mortgage broker and asking for this information. When you get these quotes compare them and
note the quote with the lowest rates and the best repayment terms and conditions. This will allow
you save money when you finally make your application for the mortgage.
How to Get a Mortgage After a Bankruptcy Discharge
And now if you need information or do not understand anything, visit our website by clicking
on the link below for answers and more:
http://www.LendingAndCredit.net