If you have a bankruptcy on your record you can still qualify for a good mortgage loan. Here is what you need to know to make the mortgage process easier.
Qualifying for a mortgage after a recent bankruptcy seems like an intimidating task; however, you can still qualify for competitive rates and terms. It is especially important to do your homework before applying; researching mortgage lenders will help you avoid bad lenders that prey on homeowners with poor credit. It is possible to qualify for a mortgage as little as two years after your bankruptcy. During this two year period you need to concentrate on rebuilding your credit by making all of your payments on time.
Rebuild Your Credit
After your bankruptcy is complete you need to reestablish credit. Apply for a credit card and make all of your payments on time while keeping the balances low. Open a savings account and start putting money in the bank; building up your assets will help you qualify for a mortgage. Cleaning out the attic or garage and selling items on eBay can help you raise money to put in the bank.
Do Your Homework
Before you get started applying for a mortgage, you need to do your homework. Download a free mortgage guidebook to learn the basics. Once you understand mortgage basics you are ready to being researching mortgage lenders. Because you have a bankruptcy on your record you will need to concentrate on subprime mortgage lenders.
Subprime mortgage lenders specialize in poor credit mortgage loans. You will pay a premium for every aspect of this mortgage; however, your goal will be to refinance this mortgage two or three years down the road when your financial situation improves.
To learn more about qualifying for a mortgage after bankruptcy register for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
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