Apr
22
QUEEN B asked:
I filed bankruptcy and it was discharged in November 2003 because of a divorce. I currently have a home that I have owned for 9 years (it has a mortage pymt.). I have been employed with the same employer for 10 years. I am wanting to sell my current home and move to a slightly larger home. Would I qualify for a home loan? I don’t want to keep submitting loan applications in fear that it may bring my credit score down. Any suggestions?
Glenda
I filed bankruptcy and it was discharged in November 2003 because of a divorce. I currently have a home that I have owned for 9 years (it has a mortage pymt.). I have been employed with the same employer for 10 years. I am wanting to sell my current home and move to a slightly larger home. Would I qualify for a home loan? I don’t want to keep submitting loan applications in fear that it may bring my credit score down. Any suggestions?
Glenda
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3 Responses to “Would I have a good chance to be eligible for a mortage loan?”
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Dennis
Yes, you would qualify for a loan. The question is what type of loan you would be able to get. The typical conforming loan likes a little more seasoning on a bankruptcy, but it is not out of the question, depending upon all factors on your application.
The more down payment, the more reserves, the cleaner your re-established credit after your bankruptcy, the better you may be able to expect. There are tons of loan availabilities out there, and you should qualify for something.
Do NOT keep submitting to different lenders. Go to ONE solid mortgage broker and have your credit pulled once with someone who has lots of availability.
You can get more info at my website
Rose
QueenB,
It sounds like you’re doing very well on your ‘road to recovery’! And, yes it sounds like you would be able to qualify for a home loan, assuming that you’ve been regular with your payments and other financial obligations since your BK.
Definitely consult with ONE mortgage lender to get Pre-Approved! Not knowing where you are located, I’d suggest Countrywide Home Loans.
Good luck!
Lee
The bankruptcy is no longer hurting you in applying for a mortgage.
You are basically qualified, you have a job that you have been at for more than 2 years, you have lived in the same place for more than 2 years.
Look in your local phone book and call a mortgage broker, he has access to many lenders that underwrite his loans for his clients. If one can not or will not underwrite his loans, without getting another credit report or appraisal he can just change underwriters.
Before you call assemble the following
#1 Six months of bank statements from all the banks you do business with, to include statements from your 401k plan at work
#2 One month of pay stubs
#3 2 years of federal income taxes including the W-2s for the same years.
Sit down with your favorite beverage because this will take awhile as your mortgage broker complete a loan application for you.
Once this has been accomplished he will then run a credit check to find out how you pay your debts and get your credit score.
Your credit score will determine the type of loan program you are qualfied for as well as the interest rate you may get.
This mortgag broker might ask for additional information, find it and give it to him, he will be doing this throughtout the loan process.
Once he has determine your score did a little with your income and debts you have on your credit report he will not be able to tell you the amount of money a lender will allow you to buy your next home.
You and he can now sit down and go over the programs that you and he think are best suited for you. Once this is accomplished,
He can not issue you a pre-approval letter. You might even qualify for a 100% loan, and if he seller is willing to pay closing cost you can get into this property for no money out of your pockets at all
You should now find a real estate agent or if fhe knows one use the one he knows, to assist in finding you a new home.
Once you and the agent has located a house you like the agent will then write up a contract of sale for you and the seller to sign. He will give one to the mortgage broker for his use.
Now once the mortgage broker has this he will now set up an approintment for the real estate appraisal to appraise the property to show proof that the value is there.
The mortgage broker will also obtain a escrow closing agent as well as title company to assist in closing the transaction. Again he might ask for additional information or documentation, just give it to him, they are that way.
One day the mortgage broker will call and tell you that your loan docs are ready to be signed and will want to set up a date and time for you to do this.
What are you planning to do with your current home? Have you considered renting it out for income and a tax write off. It is not easy, but then, if you have common sense you can easliy learn how to become a land lord. The rent ceiling must surely equal what you are paying your current mortgage company.
Don’t forget to set aside some of your rent money for expenses. You will need about 6-8 months of what you are crrently paying for your monthly mortgage.
I hope this has been of some use to you, good luck.
“FIGHT ON”