1. Repair your credit rating: As you know that your credit rating is the most important thing that is taken into consideration by the lenders before approving a loan, you need to first go through effective credit repair. Order a free copy of your credit report and dispute the errors and the negative listings so that your score is increased, making you creditworthy to the lenders. Carry on making timely and regular payments on your financial obligations so that you can easily put yourself in a better position to get a new second mortgage loan.

2. Verify the lending conditions of the sub prime lenders: Usually, you will find the sub prime lenders lending you loans at higher rates in order to lend credit to borrowers with high risk. Stay updated on the current home equity loan rates so that you’re not duped into receiving outrageously high interest rates while refinancing. If you have adverse credit rating, it is most likely that you may have to pay some points more than that of a traditional loan.

3. Shop around for a good rate: In order to get a second mortgage after filing bankruptcy, you need to make a comprehensive market research so that you get the most competitive rate and in accordance with your finances. Gather various quotes on your home mortgage loan and also compare the rates and service charges associated with a mortgage loan. Select the loan that suits your financial needs in the best way.

4. Check the other factors: A mortgage loan does not only depend on the interest rate of the home loan. There are some other factors too that are taken into consideration. The location of the property and your employment history is very important when it comes to seeking a refinance quote. The lenders will look into all these factors so that they do not have to face the risk of the borrower defaulting on the mortgage loans. Get the detailed information on all this online so that you can take a good decision while refinancing your mortgage.

Therefore, if you have filed bankruptcy and are spending sleepless nights about the possibility of getting a second mortgage, you must have educated yourself from the concerns of this article. Consider the points mentioned above so that you can obtain the best home mortgage loan in the market.

If you don’t have a checking account, a tenant will have to get a receipt from the landlord to prove their payment history. Have you checked your credit score report lately? This would be smart idea because more often than not there are inaccuracies and these need to be dealt with and may take time to be resolved properly. Be patient and persistent with this process, it will not happen overnight. Equifax, Trans Union and Experian are the major credit report agencies.

In reality, you probably will have to pay an interest rate higher than someone with perfect credit, but you can always refinance at a later time for a better rate. Waiting a couple of years after bankruptcy can provide enough time to get your credit report to a place where it might be possible to qualify for average rates. Do some preliminary shopping online for lenders; you can easily see comparative rates at a glance and save time.

The traditional type of mortgage is known as a repayment mortgage, and your monthly payment goes towards not only the interest on your mortgage, but also towards repaying the capital sum borrowed. This type of mortgage is preferable to most people as it means that at the end of the mortgage term the entire amount borrowed will be paid off, and there will be no lump sum to clear or re-borrow. While you will always be paying a small amount towards the capital borrowed, for the first few years of a repayment mortgage, the majority of your monthly payment will be going towards paying the interest that is charged to your account. Typically the first ten to twelve years of a repayment mortgage are more interest than capital, in fact it is only around year twelve that more than 50% of your monthly payment amount will be going towards repaying the capital.

The second type of mortgage is an interest only mortgage, and the monthly payments on this will be going purely towards the interest, with no amount being paid off the capital sum borrowed. This method does dramatically reduce the monthly payments that need to be made, however the downside to this is that the capital sum borrowed is staying the same month in month out. This means that at the end of the mortgage term, the amount your initially borrowed is still owing, and unless you know you are going to come into a lump sum of money that will allow you to repay this amount in full, then taking an interest only mortgage can be a risky option. However, many lenders realise that the first few months of home ownership can be an expensive time, and for this reason it is not uncommon to find that they offer interest only payments for a limited amount of time, for example three or six months, meaning you have a little extra free cash to help with things such as furnishing or re-decorating your new home.

There is no right or wrong type of mortgage, and the way you choose to handle your mortgage repayments is purely your choice and should be suited to your current circumstances. The most important factor when choosing your repayment type, particularly when taking out a mortgage after bankruptcy is to be sure you can afford to make them every month.

One mistake that many people make when they are looking for a mortgage is they ring round banks asking what rates they are currently offering on their mortgages. This is all very well and good, but it doesn’t take into account your personal circumstances, and especially for those with adverse credit history, this approach is not going to be of any use. You want to find a lender that can provide you with a mortgage product that is suited specifically to your current and future needs. It is all too easy to look at a few different mortgage products and choose the one with the lowest introductory interest rate or the lowest monthly payments, not taking into account how these rates and payments are going to rise at the end of any introductory period.

There are some key aspects to mortgages that are worth spending that little bit extra time researching to ensure you fully understand the product you are being offered. Here are just a few of these:

• What percentage of the purchase price is the lender prepared to lend you – this is sometimes referred to as the Loan To Value ratio or LTV ratio;
• What is the maximum repayment term the lender will offer you;
• Are you allowed to make over-payments, if so are there any caps on these;
• Is there the option to take a payment holiday if you wish to do so;
• Does the lender offer interest only repayments;
• How often is interest charged to your account;
• Are there any other product discount incentives should you take a mortgage with them, such as home insurance or car insurance;
• Do early redemption penalties apply should you wish to pay off you mortgage early?

While this is by no means an exhaustive list, it does give you some idea of the kind of things you should be asking about along with interest rates and monthly payment amounts. As you will see there are many different elements that make up a mortgage product, and it is only when you can see all these elements that you can really compare lenders accurately. Just because you are applying for a mortgage after bankruptcy doesn’t mean you can’t be choosy about your mortgage product, you may not have as much choice as someone approaching mainstream lenders, but you will still be able to choose from a few products.

You can only start the application process once your bankruptcy has been discharged by the court, so while you can look around at various brokers and lenders before this, there is no point in applying until afer your bankruptcy discharge date. Lenders will look at various elements of your circumstances in order to decide whether you take you on as a creditor.

Depending on your circumstances, there will be many different types of offer available to you, some of which are outlined here. Of course these are purely rough guidelines of the kind of offer you might receive.

It is possible to get a mortgage offer the day after your bankruptcy is discharged and filed at the court as being so. If you have at least a 15% deposit along with any associated closing costs, then you may will find a lender that will take you on, however you will more than likely need to go through a specialist broker who will have access to lenders that will.

If you have filed for a chapter 13 bankruptcy, then you can in fact refinance before your discharge date as it is on a payment plan for 3-5 years of the bankruptcy date. In fact it is sometimes possible to get a mortgage after bankruptcy as little as a year after filling when it comes to chapter 13 bankruptcies, which means if you have equity in your home you can also pay off your chapter 13 in the process. It is possible to get 100% financing on a home with chapter 13 bankruptcy, but this is all dependent on your income, credit score and trustee rating.

Waiting two years following your bankruptcy discharge date is of course the almost guaranteed way to secure a mortgage after bankruptcy as you will be able to not only build up a good credit score and payment history, but this is also deemed an acceptable amount of time by most mainstream lenders.

There are a few simple steps to making sure your credit report and credit rating are in good shape. Firstly, after your bankruptcy discharge date, obtain a copy of your credit report and go through it with a fine toothed comb. You may well find that accounts are still showing as open and in arrears when in fact they were included in your bankruptcy and should be showing as such. If you find this is the case on your credit report, contact the credit agencies and ask them to correct these errors as they can be detrimental to you in the future. This may take a few calls, but it is vital to make sure the information on your credit report is accurate as it will affect any future decisions that are made with regards to future lending.

The next thing to address is improving your credit rating. Now this will take time, but it is possible to make a big difference in the two years following your bankruptcy discharge date. One of the best ways to do this is to get a credit card. This may seem a strange suggestion seeing as you are just out of bankruptcy, and may bring to question whether you will be able to get a credit card in your situation. There are many companies that specialise in high-risk credit cards, and they do this by charging incredibly high interest rates. The key to making this kind of credit card work for you is to use it maybe  a couple of times a month on affordable purchases, meaning things that you have the money for, then pay it off in full at the end of the month. If you don’t feel you will be able to do this then do not even consider getting this type of credit card and trying this method, you can only make this work to your advantage if you have the discipline to only make small purchases and pay it off in full every month.  By following this pattern, you will show that you are a good debtor, you can manage your debts and are capable of making regular payments. This will increase your credit rating steadily over the course of a few months, and if you find you are able to stick to this plan, you can apply for a regular credit card at the end of the first year, if you are accepted then you are well on the way to repairing your credit rating. Repeat this process with your regular credit card to once again prove you are a responsible borrower and can maintain regular payments with ease.

At the end of the two year waiting period, it is advisable to once again request a copy of your credit report to make sure everything is in order. If you are happy with what you see then you are in a good position to consider applying for a mortgage.

The kind of criteria that lenders will expect you to fulfill will be things such as proving you can make regular repayments and have a regular income. They will also expect you to have a substantial sum of money as a down payment for your property. This is one of the main ways mortgages for people who have gone bankrupt vary from regular mortgages. Lenders will see you as a high-risk to them, and therefore they need some kind of reassurance that you are not going to default on repayments. By asking for a larger than average down payment on the property, they are making sure you have a vested interest in the property and are commited to maintaining payments on it. It may also be the case that there is an arrangement fee that you will need to pay, again this is the lenders way of making sure you are serious about acting responsibly towards your debt.

You will find that your mortgage interest rate may be higher than those offered to low-risk borrowers, this again reflects the risk the lender feels it is taking. It is possible that these rates will come down over time as you prove you are able to keep up with the repayments and are commited to paying off your mortgage.  It will be possible to get either a repayment or interest only mortgage after bankruptcy, as the fees and rates that form the package will ensure that the lenders risk exposure is minimised, so it is up to you to choose the product that best suits your needs, and also is one that you can manage. There is no point taking out a repayment mortgage if really all you can afford at the present time is the interest repayments, this is how problems start and potential defaults start to occur. Due to the fact you have bad credit, even one missed or late payment can have a  big impact on your credit rating and your creditors attitude towards you. Being in a high-risk group means that anything that can be perceived as a warning sign of potential defaulting will be taken as such, and may result in penalties or higher interest rates and worst case the withdrawal of credit.

While the attractiveness of the packages on offer may be limited, you will still find a good range of mortgages available to you through the right specialist lender.

This of course is going to take time, and depending on the type of bankruptcy you filed for it will stay on your credit report for either 10 years if it is a Chapter 7 bankruptcy  or 7 years for a Chapter 13, although this can also stay for 10 years in some circumstances. However, this does not mean you have to wait 7 or 10 years before you can start to apply for credit again, of course you shouldn’t be rushing to get yourself back into debt, having had to go through bankruptcy proceedings, but there are some circumstances where it is unavoidable such as getting a mortgage.

There are ways to help speed up the repairing process, although not by much, but, every little helps. If you know you want to apply for a mortgage as soon as you can, then you should get yourself a credit card from a company that specialises in high-risk lending. Use this to make a couple of purchases a month and pay it off every month, in full. This will build you a good payment history and show you are a responsible debtor and that you are capable of managing your debts. It is prudent to note that if you have an application rejected you should wait at least a week, preferably two or three before trying another application as each application leaves a footprint on your credit report showing it has been searched and why it has been searched. Having too many of these on showing on yor report will not go in your favour.

This will put you in good stead with future creditors.  Now, most lenders will expect you to wait at least 2 years before you apply for any serious credit such as a mortgage, however there are lenders out there who may consider your application after 18 months if you have repaired your credit rating to a certain extent. The problem with these type oflenders is they specialise in high-risk lending therefore will have much higher rates and may well ask for arrangement fees and large deposits up front. If this is not a problem for you and you are keen to get a mortgage then this could be the right path for you, and you could be looking at getting a mortgage application accepted around 18 months from your discharge date.

If you are not keen to take the high-risk lender route, then you are going to have to be more patient. It may only be a case of waiting an extra 6-12 months, all the while working on building a good credit history and payment history, and saving a good deposit in order to show that you are serious about taking on such a large debt and are commited to paying it back in a timely fashion.

You will need to approach a lender that specialises in bad credit lending, and they will be able to advise you of their lending criteria. As a general rule you will find that most lenders will require you to have proof of employment status and have been in steady employment for a period of time, they will also want to see your full credit report. These are things that most standard lenders will want to see, in addition to these you may well be asked for proof of a good payment history, and also show what liquid assets you have available to you, as a large down payment may well be required. A lot of mortgages that are given following bankruptcy will need a larger down payment than a regular mortgage as this shows to the lender that you are willing to make a substantial investment in the property yourself and are therefore less likely to default on your mortgage. There may well be other criteria the lenders wish you to fulfill, in some cases it may be that you have to hold off in your application until you meet all the requirements. This in itself isn’t necessarily a bad thing as it gives you time to keep improving your credit rating and also to build up a larger cash reserve.

In some cases it may be best to go through a broker that specialises in mortgages after bankruptcy as they will be able to look at your individual case, assess it and then recommend products that are most suited to you and that you will most likely be approved for straight off. While this route may incurr additional fees, it takes a lot of the pressure and stress out of the process, and can make finding the right mortgage a lot quicker.

During these two years it is up to you to make sure your credit rating goes up and your payment history is perfect, as these will go greatly in your favour when the time to apply comes. Generally after two years you will be able to get a mortgage loan without much trouble, and you may even be able to get 100% finance. Lenders decisions will be based on slightly different criteria than they would for a regular mortgage though, they will not only look at your credit report and rating, they will also want to see income verification and that you have access to liquid assets. Most mortgages that are given following bankruptcy will need a down payment, as this gives the lender commitment on your part, if you are willing to invest in your property you are less likely to default on your payments.

It is important to remember that the terms of mortgages after bankruptcy are likely to be less favourable than those of a regular mortgage as it is seen as high-risk lending. This may mean a larger down payment is required, or the interest rates may be higher in order to limit the lenders exposure. This is why most bad credit mortgage providers like to see you are in a position to make a large down payment. If you don’t have enough for the down payment required, there are a couple of options open to you, the first is to wait and save up more money, which has the added benefit of taking you even further away from the date of your bankruptcy discharge, making you a more attractive debtor. The second is to take out a loan to make up the balance of the down payment, now this is a potentially dangerous move as you will have to be able to keep up with both the payments on the loan and your mortgage, however it may be easier to borrow a smaller sum even with poor credit.

There are many lenders out there that can offer financial assistance to people with bad credit and those looking to obtain a mortgage after bankruptcy.