Acquiring mortgage after bankruptcy is a cause of worry for many debtors. You may not qualify for the best interest rates immediately after bankruptcy, but your continued efforts to re-establish credits will help to convince a lender that you are a genuine borrower. Bankruptcy is no longer a lifelong taboo. There are lenders willing to work with debtors who have built good credit after insolvency. Read on for comprehensive information about securing affordable terms and rates on bankruptcy mortgage loan with a reliable mortgage lender.
How to Secure Mortgage Loans after Bankruptcy?
Getting a mortgage after bankruptcy is not too difficult if a debtor has tried to build up good credit. A low rate could be obtained in a variety of bankruptcy mortgage loans like interest only mortgages, home equity loans, business venture funding, etc. A low mortgage rate helps in saving thousands of dollars to the borrower. Many online sites offer free quotes on home loans after bankruptcy. Filing a chapter 13 bankruptcy puts debtors in a better position than a chapter 7 filing. A chapter 13 filing stays on the credit report for 7 years as against the 10 years for chapter 7. In a chapter 13 filing, the debtor follows a repayment plan to pay off the filing's listed debts. The debtor need not wait too long to get a home loan after bankruptcy or to qualify for a bankruptcy mortgage loan.
It is better to wait for two years after bankruptcy before looking for a home mortgage. It is also important to pay all bills on time during this period. At the same time, it is good to save for the down payment. A combination of a savings account and either certificates of deposit or saving bonds can be used to invest the down payment money. A large down payment poses less risk to the lender and thus the lender may be motivated to offer a lower interest rate.
The PMI is another factor to be concerned about while purchasing mortgage loans after bankruptcy because of the poor credit history. It is better to avoid a mortgage with 2 to 3 years of prepayment penalty. The interest rate on a mortgage after insolvency could be up to 12 points higher than on a regular mortgage. After insolvency, there are three things a debtor will need to deal with: credit history before the bankruptcy, the cause of the insolvency, and how to handle home loan finances after bankruptcy.
Steps to Purchasing Bankruptcy Mortgage Loans
Bankruptcy may result due to careless attitude of a borrower but in most cases there is a genuine cause for bankruptcy filing. Unexpected business losses, loss of job, unanticipated medical expenditure, etc, are few such examples. If you have faced a bankruptcy due to any such causes and if you are looking to secure a home loan after bankruptcy then we can help. Spare a few seconds to fill out our simple hassle-free online form. Our mortgage experts will study your situation and will advise you regarding best options available to you. We strongly believe in offering you a second chance to help you get hold of your finances to straighten your situation. Our services are completely free and there are no obligations attached. Hurry! Let us find you the best mortgage after bankruptcy to help you effortlessly tide over your financial disaster.