If you are about to bankrupt then knowing what are your possible chances to get mortgage after bankruptcy may surprise you. So many people have a thought “getting a mortgage just after the bankruptcy can’t be done and it is only a dream”. This is not a true fact. If you find yourself with the bankrupt situation and you are in the need of getting a mortgage then you don’t need to get despair. There is a hope to get a mortgage Mortgages for bad credit. All you need to do is, just take up the appropriate way of applying the mortgage loan. So you can find yourself with the most favorable situation of getting Home loans for bad credit.
Very first step you need to take towards getting the Mortgage after bankruptcy
If you want to obtain home loans for bad credit then your first step should be getting the credit report from the credit bureaus. As per law every US citizen are entailed to receive one free copy of the credit report from all three credit bureaus once in a year at free of cost. You can get a free credit report, but to access a credit score however you need to spend little out of your pocket. If you find your score below 560 then the type of mortgage loan you need to apply for is bad credit mortgage loans. Every year nearly 30% of the people have found errors with their report. So make sure your credit report does not contain any false or inaccurate information. When you find any errors you should report it to the credit bureau. If it is a minor error then they will remove the negative inaccurate information from your report.
Getting an approval for mortgage after bankruptcy is not an easy task as the people who are getting an approval for the mortgage with good credit scores. But it does nit necessarily mean that you can’t obtain a mortgage loan. Thing is you should choose the right lender and right way to apply for.
So many mortgage lenders will refuse to offer the mortgage loans until you cross nearly 2 years from the date of bankruptcy. So getting a mortgage will be quiet touch in this period. You can utilize this 2 year span to improve your credit score. One of the very important things that anyone after the bankruptcy should do is correctly managing the debts from after the bankruptcy. If you do so you can rebuild the credit score very easily so that you can qualify for the even better mortgage programs.
Following are some of the useful tips to rebuild your credit score and obtain a mortgage after bankruptcy.
In order to get a mortgage within 2 years after bankruptcy, you need to maintain much better timely payments. Never miss the monthly payments. Your every missed payment will appear on your credit report. When you pay off monthly payments on time it indicates you are being regular with your payments and so you are reducing the debts associated with your account. It will give the lender to have hope on providing you the Mortgages for bad credit.
If you are wealthy enough then you can pay the mortgage lender the deposit amount of 3 – 5 % of the mortgage. It will increase the possibility of getting home loans for bad credit.
Limit further debt
It is good to stay away from the debt after the bankruptcy. When you apply for mortgages the lender will check your debt to credit ratio. Preferred limit is 40:60. It means your income should be 20 percent higher than your total debt payments every month.