Buying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy
By Ray Vinson | February 29, 2008
Author: Carrie Reeder
If you have a recent bankruptcy on your credit and are looking to get financing for a home, there is hope. Buying a home with bad credit will just put more emphasis on the other two factors needed to get a mortgage loan, which are; income verification and a down payment.
After bankruptcy most lenders want you to wait at least 2 years from the time of the bankruptcy discharge before they will consider you for a mortgage loan. After the two year waiting period is over, you should be able to get financing easily. You should also be able to get 100% financing as well. You can usually achieve this as long as at least most of your payments have been reported to the credit bureau as having been paid on time since the discharge of your bankruptcy.
If you are looking to get a mortgage loan after bankruptcy sooner than the 2 years from the time of discharge, you will need to have almost flawless payment history since your bankruptcy discharge. Also, you may need to have a down payment. If you have even 3-5% to use as a down payment, that may be enough to help you get approved.
There are ways to get a down payment for your mortgage besides having the money saved in the bank. Here are some ideas of ways to do that:
1. Borrow or ask for a gift from relatives. After you have financed the house, you can usually go and take out a 2nd or 3rd mortgage up to the full value of your house, and then you could repay the relatives. Keep in mind that if you intend the money to be as a loan only from the relatives, you would need to disclose that to the lender before you close. Lenders usually have regulations about where the down payment is coming from and if you are not honest, it could be considered defrauding a lender.
2. There are down payment assistance programs like Neighborhood Gold or the Nehemiah program. These programs basically aid the seller in helping you with a down payment. Receiving a down payment from the seller of the property is illegal, but through these programs, it is legal. There are also other down payment assistance programs which are grants and do not need to be repaid or paid for by anyone. To find out about these, do a search on “down payment assistance” with your favorite search engine.
3. You could cash out a 401K or another investment and like in the first example, repay yourself with a 2nd or 3rd mortgage after the loan has closed.
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Get Money Out Of Your House By Vinson Mortgage Group
By Ray Vinson | August 25, 2007
Author: Jason
A Home Equity Line Of Credit is a type of loan in which the home acts as collateral and creates a lien against the house of the borrower that means if there will be any failure in repaying the amounts borrowed by you may lead to the loss of your home. Such loans are useful in major home repairs, medical bills, or education. How To Select The Best Plan Of Home Equity Line Of Credit The most important thing which should be considered while selecting the plan of the Home Equity Line of credit is to opt for that plan which should always meet your particular needs. For this, it is always recommended to go through the terms and conditions of each plan thoroughly which should include its APR and the various costs like closing costs, fees, etc. which have led to the establishment of the plan. On obtaining a comparative picture of various costs and APRs of different lenders, you will be able to choose the best out of them. Various Costs Of Establishing Home Equity Line The various costs of establishing the home equity line are like the costs which are generally paid while purchasing a home. Such as, 1. For the estimation of the value of the home, a fee is charged for the property appraisal. 2. An application fee is charged which is non-refundable in case of turning down for the credit. 3. The Up-front charges include one or more points in which one point resembles 1% of the credit limit. 4. The closing costs cover the fees which have been charged for the attorneys, searching of the title; preparing and filing mortgage; insuring title and property; and taxes. 5. There are certain charges which are imposed on every drawl on the credit line that include annual membership or maintenance fees and a transaction fee. How To Repay Home Equity Line Of Credit There is a wide range of plans available which can be opted; therefore you should always opt for a plan in which you can easily repay the borrowed amount. In most of the plans, the payments paid are covered as the portion of the principal and accrued interest. On contrary, there are certain plans in which nothing has to be paid towards the principal. It has been observed that most of the consumers are interested in paying the principal amount on regular basis as in the case of other loans. The consumers have to pay a huge payment at the end of the plan even if they have paid little or no principal amount of the loan. This massive amount can be refinanced by taking a loan from some other lender. And on not submitting this amount, you can loose your home. In case of varying rate of interest, the monthly installments will always be different. Let us consider an example. On borrowing $10,000, if the rate of interest is 10%, then the monthly payment will come out to be $83. But if the rate of interest hikes up to 15%, the monthly payment will also hike up to $125. Therefore, there are the chances that the monthly payments may increase if the payments are made by covering a small portion of the principal and interest. In case of selling the home, the home equity line has to be paid off immediately, but the renting of the home may not be allowed according to the terms and conditions of the agreement. Therefore, opting for a Home Equity Line Of Credit can prove to be beneficial if done in an appropriate manner.
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The Home Buying Process For The First Time Buyer
By Ray Vinson | August 25, 2007
Author: Jason P Bertrand
It is much better to pay a home mortgage loan and build equity than it is to rent and pay someone else’s home mortgage loan for them. By purchasing your own home you are investing in your own future. The possibility of owning ones own home is easily within reach, if there is someone there to help. When buying your own home there are many programs specifically tailored to meet your needs.
The US government insures many of these programs which in turn reduces the risk for a lender. Due to the reduction in risk lenders are extending more credit to first time buyers than ever before. In 2005 40% of home buyer’s were able to finance their home mortgage loan with no cash down. This dramatic increase is due to government subsidized loans. Stop paying another persons loan and begin earning equity in your own home.
The best place to start is by getting a pre-approval. The best thing one can do is have a friendly experienced mortgage company to help you through the process. There are several steps that one should analyze as a first time buyer. All of these steps will help you in during your first home purchase and first home mortgage loan.
1. Get an idea of what you can afford
There are several factors, that when combined, will tell one what is affordable as a housing expense. It is best to contact a mortgage broker to help with the calculations. Some of the criteria include, but are not limited to: income, current expenses, credit, down payment, interest, job stability, payment history, loan rate, loan term and closing costs.
2. Know your rights
You should receive a copy of a Good Faith Estimate or GFE. You need to know what the fees are associated with the home loan and the total cost of interest to you. These are called the closing costs. Although getting a low rate loan is great, one has to realize that the closing costs have an effect on the annual percentage rate. The annual percentage rate is different than the interest rate. The annual percentage rate is a calculation that includes the interest and the closing costs. It is illegal to be discriminated against based on your sex, creed, race, age, sexual preference and several other issues. You are entitled to know why you were not approved for credit if that is the case.
3. Shop around
There are tens of thousands of lenders and brokers in the United States. Find someone you are comfortable with. A lot of people do not realize that when one goes to a lender they can only take advantage of a program that the specific lender offers. By utilizing a broker you are able to take advantage of the wholesale purchasing power of that broker. A broker can generally save money from what a lender would actually charge.
4. Understand the programs available to you
There are several government insured loans that can help to relax the requirements needed to get a home mortgage loan. Last year 40% of home buyers purchased their new home with no money down. This dispels the myth that one needs to put money down in order to purchase a home and get a home mortgage loan. FHA, VA, and HUD are three government insured loans. 5. Shop for a home
Find a Real Estate agent that you trust. Finding the right home is a very important process. There are more factors involved than the home itself. Look at the school systems, the emergency service personnel, and the town or city government. Make sure the home you pick is in the place you want to live as well. Make sure you look at more than one home. Even if your first impression of the first home you look at is “This is the one!” take a look at a few more just to make sure. This, for most people, is the biggest purchase they will make in their entire lives. Take your time and be sure about the right home.
6. Make an offer
When making an offer make sure everything is put in writing. What items you would like included. Things like curtains, blinds, fixtures, chandeliers. All of these things should be listed on the purchase agreement to make sure you are getting what you requested. Simply because you place an item on the purchase agreement does not mean the seller will agree to it. It does mean that it will at least get addressed and will be factored during the negotiation. Make sure you make the sale contingent on a home inspection and have everything put in writing.
7. Have a professional inspect the home
Hire a professional home inspector. The home inspector will go through the home and make sure the home is in good condition. Although a home may look beautiful from the outside, there could be some underlying issues that would change your opinion. The home inspector will make sure all of the mechanical and electrical systems are sound and will also make sure there is no damage from water, rodents or insects.
8. Shop for home owner’s insurance
There are plenty of insurance companies out there. Just like auto insurance, the premiums can vary greatly between companies. Check several companies and make sure you are getting a good price for the coverage you need.
9. Close on your first new home
When closing on a home it is very important to read everything that you sign. It is important to get copies of the documentation prior to closing so you can go through them. You need to be able to address any concerns prior to the final signing date. If everything is in order, receive your keys, and move into your new home.
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