Pre-qualifying is a very important tactic to try achieving before applying for a mortgage refinancing after a bankruptcy. Approximately two years after bankruptcy, a borrower can try to qualify for a mortgage for a home or a property after careful credit repair and rebuilding activity.
Is Refinancing After a Bankruptcy Possible?
Part of working with Winter Park bankruptcy, foreclosure and mortgage workout attorneys Roddy Lanigan and Eric Lanigan is having experienced attorneys who will work with clients and provide financial guidance to help rebuild life after bankruptcy.
Pre-qualifying for a mortgage can help to give a borrower an idea of how much money they can borrow. When evaluating bankruptcy mortgage lenders, look for those who have a post-bankruptcy program.
There will be firms everywhere but you have to research them and talk extensively with them to confirm their experience. Check to see if the lender is solid and reliable and has been in business for many years.
If by chance you are turned down by all the firms that you have applied with then it means that you need to work on credit history and then come back and repeat the application process.
Or if a borrower has again acquired some debt, bill consolidations may help. Some loan specialists will help a borrower compare rates and the fees between different companies. This helps the applicant get the advantage of competition in the lending market rather than just dealing with one company at a time.
If you’ve filed for Chapter 13 you will have no time limit on when you can apply for mortgage refinancing after a bankruptcy. However, you’ll need to demonstrate you’re paying for all your obligations on time through the trustee appointed to your case.
The Chapter 13 trustee will also have to approve the new application. But the process of obtaining a new home or property can be difficult. One of the ways to be able to buy a house without any money down is to look for spec homes from builders that they are willing to sell.
These are home builders who build a lot of homes in one area with numerous house plans and price points that were available before the housing market glut. Now, deep into property recession, some builders will also be willing to participate in a downpayment assistance program, so be sure to ask about these programs.
These programs usually don’t ask the buyer to repay the gift and are not restricted by geographical area or income of the buyer. But whatever a property buyer can bring for a down payment will help in dealing with bankruptcy mortgage lenders.
FHA loans have limits on them so any terms must be contained within those limits. To get a better deal, a buyer may also agree to use sweat equity so that the cost of the home is kept lower.
Rebuilding After Florida Bankruptcy
For a person who has been through financial turmoil, you have to do your part. The Lanigans will provide information on before, during and after bankruptcy financial management.
You’ll go through mandatory bankruptcy counseling so when dealing with mortgage refinancing after bankruptcy, an applicant must not expect to have terms that equal what he had before his financial difficulties.
Interest rates will be higher and the costs will also be higher. Bankruptcy filers can’t go back to the same patterns of multiplying debt without planning for how to pay back all that money borrowed. When getting a new loan, a borrower cannot expect to build up equity quickly because the terms of the new contract for a house will not be conducive for that.
Applicants may need to be patient about buying a home right away. One of the most important assets for a person who is rebuilding his credit and trying to buy a home is to act out of consistent payments, careful credit-building tactics and long-term saving for property.
