Bad Credit Mortgage:::badcredit-mortgagetip.info

Years ago, people who had a bankruptcy on their credit report were unable to get a decent mortgage, if they were able to get approved for a mortgage at all. However, today, the rules have changed. More and more lenders are offering mortgage loans to people who’ve filed bankruptcy. If you have a bankruptcy on your credit report, and you’re looking to get a mortgage loan, read this article to find out three things you need to know about getting a home loan after bankruptcy.

Waiting Two Years Earns You Better Interest Rates

If you need to apply for a mortgage earlier than two years after the date that
your bankruptcy went through, you’ll likely get approved; however, your interest
rates will be a lot higher than they would be if you wait two years. After two
years, most lenders will see you as less of a risk, and you will qualify for
much better mortgage terms.

A Bigger Down Payment Makes You a More Qualified Borrower

When you apply for a mortgage loan, your lender looks at something called your
LTV ratio. LTV is the amount of money you are borrowing divided by the value of
your home. For example, if your home is worth $100,000, and you are borrowing
$90,000, then your LTV is 90%. 100% LTV’s are generally reserved for borrowers
with near-perfect credit. However, the lower your LTV is, the more likely you
will get approved for your mortgage. Most lenders rarely decline loans with an
LTV at or lower than 80%.

Some Lenders Specialize In After-Bankruptcy Mortgages

Some lenders specialize in loaning to people with either bad credit or past
bankruptcies. These lenders will not view you as more of a risk than their other
borrowers because all of their borrowers are in the same situation as you are.
Your best bet is to shop online and compare interest rates and terms between
different lenders. This way you can be sure that you are getting the best deal.

To see a list of recommended lenders for
bad credit
home loans or
mortgage
after bankruptcy lenders online, visit ABC Loan Guide.

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Cleaning up your credit report is one of the best ways to secure your ability to always qualify for the best financing options that get you the lowest interest rates. Correcting your credit report can significantly increase your fico score, as well as eliminate the need for credit explanations, every time you refinance or use your credit to finance something. According to the FCRA, both the CRA and the organization that provided the information to the CRA, “such as a bank or credit card company, have responsibilities for correcting inaccurate or incomplete information in your report.” To protect your rights under the law, we suggest that you contact both the CRA as well as the provider for credit information.

In the letter, inform the CRA specifically what information you believe is inaccurate. Include copies of documents that support your position. In addition to providing your name and address, the letter should clearly make out each item in your report you dispute, state the facts and provide an explanation as to why you dispute the info, and notify them that you are requesting that they delete or correct to reflect an accurate reporting. Always mail your letter certified with return receipt requested, so you can document what the CRA received and of course always make copies of your letter.

“CRAs must investigate the items in question, usually within 30 days, unless they consider your dispute frivolous.” They are also required to advance all relevant data you provide regarding the dispute to the information provider. The information you can provide the better for dispute your credit with the CRA. They must investigate, review all relevant information provided by the CRA, and report the results to the CRA. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so they can correct this information in your file.

The key for cleaning up your credit report and increasing the score is verification. Remember that any information that cannot be verified must be deleted from your file. The good news is that cleaning up your credit can help you qualify for a low interest rate for home equity loans, mortgage refinancing, and equity credit lines.

Art is a critically acclaimed writer, who has published many helpful articles mortgage realated topics. Over the last few years, Art has been a mortgage consultant helping train loan officers for some of the nation’s top mortgage companies. If you would like to read more helpful articles online, visit Nationwide Mortgage Refinance. To get more advice & finance tips, please contact go online to learn more about program updates and the approval process for Second Mortgages and Bad Credit Mortgage Loans.

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