But today, this is not the case. There are many programs available
today to help people who have recently suffered a bankruptcy or foreclosure to
get a mortgage loan or mortgage refinance loan.
There are two things to do if you are in this situation:
1. Get yourself a free copy of your credit report from all 3 major credit
bureaus, look over everything, do you see any mistakes? Make sure
everything included in your bankruptcy or foreclosure reports accurately on your
credit report. Make sure those accounts involved in a bankruptcy or
foreclosure are not showing something else like collection or charge-off..
That could make your score much lower than it needs to be. If you have a
bankruptcy or foreclosure, you want everything involved to say so, so it is all
under 1 circumstance, instead of many. You can dispute all errors on your
credit report online nowadays. It takes about 15 minutes. You can do
it right on the website of Equifax, TransUnion or Experian.
2. Once you have checked your credit reports, apply only to places
that submit your application to many lenders. Every time your credit
report is pulled, it will knock your credit score down a little. If you
apply to a mortgage service that will submit your application to many lenders,
then you only have one credit inquiry and can receive offers from up to 4
lenders per application.
Frequently asked questions are:
1. Will I have to make a large down payment? Not necessarily.
If you can get your credit score above a 600, you should easily be able to get
100% financing, even if it has been less than two years since your bankruptcy or
foreclosure. If your score is above a 580, you might still be able to
qualify for 100% financing.
2. What kind of interest rate can I expect? Depending on your
credit score and whether you have any down payment or not, I have heard of
situations with a credit score as low as 585 with no down payment and an
interest rate as low as 7.25%. That was quoted in March of 2005.
3. Can I get cash out? On a purchase, not likely. On a
refinance, depending on your amount of equity, that is very possible.
There are many lenders now, who specialize in
bad credit mortgage loans. These are the best lenders to start with.
To view our list of recommended bad credit mortgage lenders, visit us here: Tags: circumstance, lenders, credit score, equifax, credit reports, credit report, major credit bureaus, credit inquiry, mortgage service, transunion, experian, mortgage loan, bankruptcy, interest rate, 15 minutes
www.abcloanguide.com/lessthanperfectcredit.shtml
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