Bankruptcy & Mortgage Loan Approval ...
Acquiring a new mortgage loan is still possible even if you have filed for bankruptcy within the last seven to ten years.
You are probably fully aware that your credit report and credit score will be “damaged” by the bankruptcy. Although you may be considered a credit risk, there is still a possibility that you can be approved for a mortgage loan. However, it could take time finding the right lender.
Finding the right lender that offers high-risk mortgage loans may be as simple as speaking with the loan officer at your personal bank. Find out from the loan officer what the bank's policy is regarding bankruptcy and mortgage loan lending. You will want to find out:
- If the bank lends to high risk credit individuals,
- What percent is required for the down payment,
- What the estimated interest rate will be for different terms of the loan, i.e., 15 years, 20 years, and 30 years.
Many times, your personal bank will offer you the best deal on interest rates and required down payment. Although that may not always be the case, you still may wish to “shop around” for a better interest rate and required down payment.
There are hundreds of “bankruptcy mortgage loan quote offers” online. Simply type those words into a search engine and you will be presented with numerous offers for free bad credit mortgage quotes.
It is recommended that you choose a company that offers four or 5 quotes from different mortgage lenders. That way you can compare interest rates. You should expect to receive phone calls and/or emails from the mortgage brokers. Make sure they are fully aware that you have a bankruptcy listed on your credit report.
Once you receive the interest rate and required down payment quotes from the online mortgage brokers, compare them to offer your personal bank has given to you. Also, before you go any further with any of the mortgage brokers, search for “reviews” online regarding each mortgage broker's reputation regarding how they do business. You absolutely do not wish to begin a bankruptcy mortgage loan process with a mortgage broker that has been reviewed poorly online.
Even though it may take a lot more time to find a mortgage lender who will provide you with a “bankruptcy mortgage loan,” it is entirely possible to find one. In fact, your mortgage lender may even be your own personal bank.
