Welcome to Professional Real Estate Guide
Real Estate Listings Colorado Article
This is a selection made from among articles on Real Estate Listings Colorado. For a permanent link to this article, or to bookmark it for future reading, click here.
Buying A Home After Bankruptcy
from:Experienced bankruptcy lately? You may wonder if you will still will be able to get a home loan. You may also be wondering if buying home after bankruptcy is a good idea for you.
While bankruptcy can make your mortgage loan approval difficult, it is still possible to get approved. In fact there have been more and more, bad credit loans coming out all the time.
They are called the Subprime lenders; they are focusing more on helping individuals with poor credit in buying home after bankruptcy.
This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with bad credit who are looking for home financing.
Just to give you a bit of an overview here are some very good reasons to consider after bankruptcy buying home:
Increase your credit rating. When you make your payments on a regular basis, you will be able to develop your credit rating. Once your pre-payment penalty is done, you should be able to refinance your credit loan for a much lesser interest rate.
After your bankruptcy has been for ended 2-3 years, you ought to have a much easier time qualifying for a lesser interest rate mortgage loan.
You will be able to own an asset. If you are just renting a home then you are absolutely throwing your monthly payments away. Why not just buy a home, over time, its value will increase and you are working you way towards owing an asset.
Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy.
Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.
It is very tempting to buy an new home, new car, do some renovations, etc., after bankruptcy discharge you have no debt left. You will probably feel like you can afford a larger house payment due to the financial experience that you have.
But it is not that easy so here are some factors to consider before committing yourself to a new house payment.
The Pre-payment penalty. This penalty is usually about 6 months worth of house payments. And usually lasts from 2-3years. Once you sign those mortgage papers you absolutely have to make those payments. If you don't have the amount of the pre-payment penalty in savings, you are locked into making the payments or losing the house.
The Two Year Mark. Keep in mind that after 2-3 years from the date of the bankruptcy discharge, mortgage loans will be much easier to get. With a small down payment, you might even be able to get a mortgage loan without a pre-payment penalty.
So, if you are within 6 months or so from the 2 year mark. It would be smart to wait it out and have more mortgage loan options.
Borrowing Too Much. This is the most common mistake that we usually get into. If you do decide to buy a house, buy one that you know you will be able to afford. Don't max yourself out on credit, living right up to the edge of your income.
If your income suddenly drops, you'll want to make sure that you can still afford your house payment. Be conservative with how much home you need to buy.
Most of us always think that bankruptcy is the end of our credit life. But don not despair because I know some people that have been in to bankruptcy but has been able to get up again and rebuild there credit quickly most of them has even been able to buy a new house.
Bankruptcy will show up on your credit report for 10 years. That means that every mortgage lender will certainly see that fact when evaluating your mortgage application.
Although it may be difficult to find a bank to give you a mortgage it's certainly not impossible. Banks want to make money and you may find one that's willing to take the risk.
Real Estate Listings Colorado News
Reis, Inc. Expands Marketing Channels Through Penton Media Partnership
NEW YORK -- Reis, Inc. , a leading provider of commercial real estate market information and analytical tools, and Penton, a leading, independent, business-to-business media company and publisher of National ...
Read more...New Homes.org Real Estate Report Released - Denver Home Sales
The newest real estate market report from Homes.org outlines information on home sales in Denver, CO. The report provides insight on the most recent activity in the Denver real estate market area including data on current sales figures, inventory and trends in Denver home sales.(PRWEB) May 21, 2012 The newest real estate report from Homes.org details the current trends and activity in the Denver ...
Read more...Denver Real Estate Market Shows Signs of Rebound
DENVER, CO-- - New data from Metrolist®, the largest real estate multiple listing service serving Colorado real estate agents, show another uptick in Denver Metro area home prices as inventories hit their ...
Read more...RE/MAX Strengthens Market Share in Twin Cities as ERA Muske Real Estate Converts to RE/MAX Synergy
Local real estate leader RE/MAX North Central is expanding its foothold in the 13-county Minneapolis-St. Paul metropolitan market with the conversion of former ERA Muske brokerage to RE/MAX Synergy.
Read more...Early Addition: Moby Is A Real Estate Genius
In today's midday link roundup, Obama "attacked" by "yogurt," Moby masters real estate, Eliot Spitzer talks Current TV, and more! Follow Gothamist on Twitter and like us on Facebook . You can also get the top stories mailed to you— sign up here . [ more › ]
Read more...