I would like to get a home w-in the next 3-6 mths I will continue to repair my credit reports several still reporting incorrectly
1 year post bankruptcy mid score is 595 what type of mortgage can i get I have no lates and 3 pos tradelines?
You could get 100 percent financing
Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -
It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??
Talk with a broker, a broker underwrites for many company%26#039;s (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a %26quot;hard%26quot; pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.
By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.
Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency%26#039;s and other useful information.
1 year post bankruptcy mid score is 595 what type of mortgage can i get I have no lates and 3 pos tradelines?
Usually have to wait 7 years after bankruptcy for conventional financing. You may find an alternative lender. Contact a mortgage broker and ask.
Alternatively you can look into asking the seller to finance you, or look into a lease-option. Your real estate agent can help with these options.
1 year post bankruptcy mid score is 595 what type of mortgage can i get I have no lates and 3 pos tradelines?
If you cannot get your score over 600, it will be easy to get a mortgage, but you will pay a whole lot more for it.
The interest rate will be a good 7 percent or more than excellent credit score people, but you can get a mortgage, and if that is what you are looking for, it will be worth it to you.
Remember as your credit score goes up with the new mortgage, as long as you do not agree to a mortgage now with a prepayment penalty (DO NOT AGREE TO THIS) you can refinance in a year or two ,with a much better credit score.
1 year post bankruptcy mid score is 595 what type of mortgage can i get I have no lates and 3 pos tradelines?
Hold on there, big fella!
The only kind of loan you are going to get right now is the kind people have nightmares over. Extremely high interest rate, harsh pre-payment penalties which will prohibit you from refinancing when the timing is better for you to get a lower rate, super-high closing costs.
Keep doing what you are doing until 2 years have passed since the bankruptcy and your credit score is at least 630. It will happen sooner than you think. While you are at it, try to save enough in the bank for 3 months reserves for your mortgage, insurance, and taxes. The banks want to see that and it will help with your rate. Lastly, put this money in a bank where you see the bankers face to face. Let them know what you are doing and establish a relationship with them. Go to a good one like Washington Mutual or Bank of America or Wells Fargo. Don%26#039;t mess with loan brokers.
If you are determined to do this now anyway, you will need a %26quot;portfolio%26quot; lender. These lenders do not sell their loans on the secondary market. This allows them to make loans that don%26#039;t conform to FNMA standards of underwriting. You will pay through the nose, but you will have your loan. World Savings, wallet rapists that they are, is good at making loans to people like you. I don%26#039;t care for them, but I acknowledge that there is a need and a place for them in the world of finance.
1 year post bankruptcy mid score is 595 what type of mortgage can i get I have no lates and 3 pos tradelines?
The type of loan that you will be able to get might be another loan that could take you to another bankruptcy. I suggest you wait longer than just 3-6 months to repair your credit.
There are banks that do finance bk%26#039;s but the interest rates are high and some will require you a pre payment penalty.
I suggest you wait a little longer until you better you score a lot more (high 600%26#039;s) and the apply for a loan. I know what I am telling you, house prices are not going anywhere. In many local markets prices have gone flat and in others they have even dipped a bit so be patient because real estate is one of the best investments you will ever make in your life so treat it like such.
Take care
1 year post bankruptcy mid score is 595 what type of mortgage can i get I have no lates and 3 pos tradelines?
You have options. Some lenders will 1 day after discharge.
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