Mortgage after Bankruptcy

Mortgage after Bankruptcy

Most people think that it is impossible to get a loan after a bankruptcy. In fact, there are many companies and lenders who will help you with this; above that, in some cases you can obtain a mortgage service even after one day after a bankruptcy discharge. In this article you will find several tips how to speed up the process.

Firstly, you should continue to timely pay on items that were not discharged in the bankruptcy, such as your cars or your home. This will help to prove your potential lender your paying ability. Another good thing to do is to limit your other debts, such as your credit card, bank loans, etc. Your debt-to-income ratio is one of the important things that lenders look at before granting you a loan. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards.

Another important aspect is providing all necessary documents on time to your loan consultant. Items such as paystubs and tax returns are generally needed in order to establish your income and show your ability to repay the loan. Information on your credit report needs to be checked for accuracy. Items that you suspect are inaccurate need to be disputed in writing with the three major credit repositories (Equifax, Experian and Trans Union). Take your time and ensure the items are removed appropriately. The removal of inaccurate information will help establish a more favorable debt-to-income ratio and make the process of qualifying for a loan easier and conditions of the loan more acceptable.

If you are still unable to qualify for a loan, do not give up. Sometimes you need to wait for a little longer. Usually more options are available after some time passes. Just follow these tips and probably you will get your loan in 6 months or a year after the bankruptcy discharge.

© 2010, Jericho Mortgage — Mortgage after Bankruptcy