Carrie Reeder asked:




Purchasing a home after a recent bankruptcy is not impossible. Although most lenders recommend that you wait at least 24 months before applying for a mortgage, there are ways to obtain a mortgage loan sooner. Lenders are generally willing to approve recent bankrupt individuals for a home loan. The home or property serves as the collateral. Thus, if you default on the mortgage, the lender forecloses on the property. Moreover, obtaining a mortgage loan is a perfect way to re-establish credit. Here are a few tips for improving your chances of obtaining a home mortgage after bankruptcy.

Establish New Lines of Credit

It is not mandatory that individuals with a recent bankruptcy wait 24 months before purchasing a new home. However, waiting has its advantages. After a bankruptcy is discharged, you need to begin rebuilding your credit. This is accomplished by opening new lines of credit. Applying for a credit card is the easiest and the quickest way to improve credit history. Initially, you may have to obtain a secured credit card. However, once your credit rating improves, you will begin to receive offers for unsecured credit cards. Ideally, you should open at least three new credit accounts. Maintain low balances. Avoid late payments. If possible, try and pay off balances each month.

Monitor Credit Reports

Once you have begun to re-establish your credit history, start a routine of regularly checking your credit report for errors or inaccuracies. Get involve with a credit report monitoring agency. These agencies are effective because any suspicious or unusual account activity will be brought to your attention. Moreover, the agency will contact you if a new account is opened in your name. If errors appear on your credit report, contact the credit report bureau to file a dispute, and the creditor to resolve the issue.

Have a Down Payment

Waiting 24 months after a discharge to purchase a home is advantageous because you are able to obtain a mortgage with 100% financing and little money down. If you are eager to purchase a home soon after a discharge, you must have a down payment. Moreover, your credit history since the bankruptcy has to be blemished-free. Late payments or missed payments may disqualify you from obtaining a mortgage loan.

Dolores

Desiree asked:


My fiance and I were recently pre-approved for a mortgage loan, yet we have somewhat limited credit history. A co-worker told me that every time you apply for a pre-approval, it brings down your credit score … she also said that we only have 90 days to take out a loan before the pre-approval expires. Is this true? If so, I’m worried we won’t find a home within the 90 days and we won’t get a second pre-approval.

STEVIE

dulvalius asked:


Me and my wife’s name are on the mortgage, when a lender checks my dept to income percent, after they run my credit and see the house payment and credit cards etc; do they allocate the full house payment in to my dept or half of it since my wife is part owner as well?

I only have a $920 a month house payment and 2 credit cards with no balance, after doing the math of 16-20% DTI it doesnt leave me a whole lot to bargain with a monthly payment for a car, I make $3200 a month. But I have also read that lenders dont want your dept to exceed 40-50% gross pay which sounds alot better to me, Im aiming for a $400-450 car monthly note.

looking at $22,000-$25,000 total loan amount for auto, 750ish credit score with 11 months for home mortgage… 2 years of one credit card and 7 months of another around $500. limits, thats my credit history .

ODELL