How to Get a Mortgage After a Bankruptcy Discharge

How to Get a Mortgage After a Bankruptcy Discharge

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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.



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.



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.



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.



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.



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.



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.



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



Documents

How to Get a Mortgage After a Bankruptcy Discharge