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By Carrie Reeder
A few years ago, if you had a bankruptcy or a foreclosure on
your credit report, you could forget about trying to get a
mortgage loan. If you were lucky enough to find someone who
would finance you, your interest rate would be through the
roof
and plan on putting 10-20% down.
But today, this is not the case. There are many programs
available today to help people who have recently suffered a
bankruptcy or foreclosure to get a mortgage loan or mortgage
refinance loan.
There are two things to do if you are in this situation:
1. Get yourself a free copy of your credit report from all 3
major credit bureaus, look over everything, do you see any
mistakes? Make sure everything included in your bankruptcy or
foreclosure reports accurately on your credit report. Make
sure
those accounts involved in a bankruptcy or foreclosure are not
showing something else like collection or charge-off.. That
could make your score much lower than it needs to be. If you
have a bankruptcy or foreclosure, you want everything involved
to say so, so it is all under 1 circumstance, instead of many.
You can dispute all errors on your credit report online
nowadays. It takes about 15 minutes. You can do it right on
the
website of Equifax, TransUnion or Experian.
2. Once you have checked your credit reports, apply only to
places that submit your application to many lenders. Every
time
your credit report is pulled, it will knock your credit score
down a little. If you apply to a mortgage service that will
submit your application to many lenders, then you only have
one
credit inquiry and can receive offers from up to 4 lenders per
application.
Frequently asked questions are:
1. Will I have to make a large down payment? Not necessarily.
If you can get your credit score above a 600, you should
easily
be able to get 100% financing, even if it has been less than
two
years since your bankruptcy or foreclosure. If your score is
above a 580, you might still be able to qualify for 100%
financing.
2. What kind of interest rate can I expect? Depending on your
credit score and whether you have any down payment or not, I
have heard of situations with a credit score as low as 585
with
no down payment and an interest rate as low as 7.25%. That was
quoted in March of 2005.
3. Can I get cash out? On a purchase, not likely. On a
refinance, depending on your amount of equity, that is very
possible.
About The Author: To see a list of recommended bad credit
mortgage loan companies online, visit this page:
www.abcloanguide.com/lessthanperfectcredit.shtml - Carrie
Reeder is the owner of ABC Loan Guide. It is an informational
loan website, with informative articles and the latest finance
news.
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