Mortgage Loan

CAN I GET A MORTGAGE AFTER BANKRUPTCY?

CAN I GET A MORTGAGE AFTER BANKRUPTCY?

Looking to buy a house in Louisville, KY, but worried about finding a mortgage because of a bankruptcy? Bankruptcy is more common now and banks will consider making loans within two or three years after the bankruptcy is discharged - as long as your credit history has been pristine since the bankruptcy. 

Expect to be charged higher interest rates or be required to come up with a bigger down payment, though. Even if you have excellent credit history, a larger down payment usually means the best interest rates, and if you have a bankruptcy on your credit report it becomes especially important to put down as much money as possible.

Your past credit report is an important factor, but keep in mind there are several other financial indicators that are also considered.

Your employment history and income. If you've had steady employment for a long period (more...

CAN I GET A MORTGAGE WITH BAD CREDIT?

CAN I GET A MORTGAGE WITH BAD CREDIT?

If you have bad credit and want to obtain a mortgage to buy a new home, you may feel as though it's impossible since lenders tightened their eligibility rules. There are plenty of so-called “options” available on the Internet for bad credit loans, but you must be very careful to watch out for scams.

Mortgage laws have changed in recent years but, the following general guidelines apply:

• Your credit report must have fewer than two 30-day-late payments in the past two years. 

• Bankruptcies must be at least two years ago, with excellent credit history since then.

• Foreclosures must be at least three years ago, with excellent credit history since then.

If you have a few minor negative marks on your credit, you might be better off simply waiting a few months for those to clear (while continuing to make all your payments on time, of course). Alternatively, you may...

Top 10 Credit Don'ts

THINGS NOT TO DO DURING THE LOAN PROCESS

1.       Don’t Do Anything That Will Cause A Red Flag To Be Raised By The Scoring System. This may include adding new accounts, co-signing on a loan, changing your name or address with the bureaus. Generally, the less new activity on your reports during the loan process, the better.

 

2.       Don’t Apply For New Credit Of Any Kind. Including those “You have been pre-approved “credit card invitations that you receive in the mail or online. Every time that you have your credit pulled by a potential creditor you could lose points from your credit score. Depending on the elements in your current credit report, you could lose anywhere from one to twenty points for one hard inquiry. For lender inquiries as of Jan. 2007, any indicial inquiries count as one incident through a duration...