| Having bad credit will greatly affect your credit | | | | following a bankruptcy is bad. In this situation, |
| applications, especially if you have filed bankruptcy. | | | | getting a home loan is practically impossible. While |
| If you have previously owned a home, and | | | | sub prime and high risk lenders are dedicated to |
| maintained a good payment history, lenders may | | | | offering bad credit mortgages, they will not give |
| give you a loan following a bankruptcy. However, | | | | you a loan if you continue to be irresponsible in |
| if you are a first time homebuyer, expect lenders | | | | regards to credit. |
| to be leery. | | | | Purchase Your First Home with a Down Payment |
| Loan Options for First Time Homebuyers | | | | Applying for a mortgage loan with a down |
| First time home buyers have several loan options. | | | | payment is recommended for first time |
| There are loan programs that offer down | | | | homebuyers with a bankruptcy on their credit |
| payment assistance, closing costs assistance, and | | | | report. Saving for a down payment is difficult. |
| low interest rates. These amazing benefits are | | | | However, it will raise your chances of receiving a |
| designed to help you obtain a loan. Of course, to | | | | good deal. Establish a budget. Lenders do not |
| qualify for most first time home buying loans, you | | | | require large down payments. The average down |
| must have good or fair credit. Mortgage | | | | payment for a home is about 3%. |
| companies have specific guidelines. If you have a | | | | Traditional Mortgage Lenders vs. Sub Prime |
| recent or past bankruptcy, your loan options will | | | | Lenders |
| differ from an individual with good credit. | | | | Moreover, apply for loans through lenders that |
| Increase Your Chances of Getting a Home Loan | | | | work with bad credit and bankrupt applications. Do |
| after Bankruptcy | | | | not waste your time by submitting applications |
| Attempt to open new credit accounts | | | | through banks or mortgage companies. While |
| immediately following a bankruptcy. When applying | | | | these lenders may offer non-conventional loans, |
| for a mortgage, lenders need to see some signs | | | | the interest rate is extremely high. |
| of credit improvement. Thus, you should wait at | | | | Instead, apply for mortgage loans through sub |
| least one year before applying for mortgage | | | | prime lenders. Sub prime lenders offer loans to |
| loans. While a wait time of two years is | | | | individuals with low credit scores, bankruptcies, |
| recommended, if your credit improves significantly | | | | and no credit. The rates and fees for these loans |
| within a year, lenders may give you a home loan | | | | are affordable. Do your research and obtain |
| with acceptable terms. | | | | quotes from three or four lenders. Compare their |
| During the period of rebuilding and increasing your | | | | offers, and choose the mortgage lender with the |
| credit score, keep credit accounts current. | | | | most attractive terms. |
| Defaulting on loans or receiving charge-offs | | | | |