2007-08-21 13:52:31 · 7 answers · asked by NATHAN G 1 in Business & Finance ➔ Renting & Real Estate
There are still a few lenders that will give you a mortgage after your chapter 7 is complete. You must have a very good written explanation as to why you had to go through a chapter7.
Your rate will not be any where near what you read about in the newspaper each morning, but if you can afford it and make the monthly mortgage payments then this might be for you.
So the first thing you should do is contact a mortgage broker so you can complete a loan application, after which he will run your credit report.
This credit report will give him your credit score. Get a cup of coffee or your favorite beverage when filling out the loan application this is not a 15 minute chore.
Your credit score will tell him what loan programs you are qualified for as well as the interest rate you can expect. This credit score will tell if you are able to get a 100% loan and if not how much cash you have to bring to the table as your down payment.
There are lots of documents and information the mortgage broker will need. I will give you a few to get you started.
#1 Six months of all bank statements you use currently, as well as any statements from your 401k at your place of employment
#2 One months of pay stubs from all that are going on the mortgage.
#3 Two years of federal income taxes and W-2s
After discussing the best loan program for you and agreeing on the program you want, the mortgage broker will issue you a pre-approval letter. Don't forget your good faith estimate (GFE). This will give you an idea of the cost of your loan. That
is in addition to any down payment how much additional cash you must bring to the closing table.
In order to preclude PMI when a lender will finance 100% of the house you are buying the mortgage industry have solved that problem by offering a 80/20 loan. Don't be afraid of them.
You have to understand that the increase in payment if the loans are adjustable.
Your first mortgage (80%) might be a fixed product, while your second (20%) could be an adjustable product. If you don't understand the product ask your mortgage broker and don't leave until he/she has explained it to your satisfaction.
Now once this has been established you should connect up with a real estate agent to find you a home. Upon finding a home you like the real estate agent will then prepare a sales contract for you and the seller to sign.
The mortgage broker will order an appraisal of the house to prove the value.
Once all the documents necessary has been collected the mortgage broker will order loan docs for the program that you agreed to earlier. Again don't plan on spending a lunch hour there to sign loan docs this is a process so be prepared to be there for awhile.
Don't sign the loan docs if anything has change from what the mortgage broker explained to you. Call and get an explanation.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-08-21 14:25:32 · answer #1 · answered by loanmasterone 7 · 0⤊ 0⤋
Nathan depends on how long it's been since your 7. Lenders have pretty much tightened all the requirements these past couple of months, so the chances of finding a reasonable loan at a reasonable rate will be pretty hard. Take my advise, stick to lenders in your local area. Don't use an online mortgage company. If something goes wrong, you want to be able to walk into the lenders office and speak with them face to face.
2007-08-21 21:03:20 · answer #2 · answered by Alterfemego 7 · 0⤊ 0⤋
Yes it's possible. The most important part of "it's possible" is if you have paid all of your housing payments on time since it happened! The lender is most concerned with your payment history of housing expenses because that tells them how you will pay them. The credit since the chapt 7 is also important have you kept it clean or are you sliding into old habits? Careful here this is your future that you are messing around with! From a housing and an employment standpoint! Good Luck
2007-08-21 21:57:33 · answer #3 · answered by helprhome 5 · 0⤊ 0⤋
Most lenders require your bankruptcy to be discharged a minium of two years before they will qualify you for a mortgage, also your credit score since you filed bankruptcy will also be a consideration.
Good luck, I was able to buy a home after bankruptcy so you should be able to also.
2007-08-21 21:24:07 · answer #4 · answered by Weimaraner Mom 7 · 0⤊ 0⤋
General Finance may after 3-4 years.
2007-08-21 21:17:56 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Most lenders will not want to give a loan to someone who has filed bankruptcy. Your credit will be adversely affected and good credit is a criteria for taking out a mortgage.
2007-08-21 21:00:20 · answer #6 · answered by rojo_jojo 5 · 0⤊ 0⤋
It better not be! What kind of sacrifice/last resort would bankruptcy be if you could turn around and buy a house?
2007-08-21 20:58:35 · answer #7 · answered by Anonymous · 0⤊ 0⤋