Home Loan After Bankruptcy...Need Advise
Hello everyone. Just to give you a little detail about myself. I am 25
years old. I accumlated some debt while I was in school and couldn't
handle the payment anymore so I filed for bankruptcy back in June of
2002. It has been almost 3 years now. Since then, I have been in a
stable job making around 60k a year. I am single with no kids. Here are
my expensive that I have which isn't much.
1. rent with utilites is 700
2. 10k student loan with a 180/month plan.
3. Insurance 150/month
Thats pretty much it. I have no car payment. Insurance isn't that much.
I don't have any credit card except a debit card from bank. Other than
that, thats it. I was wondering what are my chances of getting a house
loan? how much of a loan? what are my interest going to be? My FICO
score is like 580 or something. I have about 10k saved up. I have about
12k in 401k investment. Other than that, thats pretty much it.
Some other question:
how would I improve my chances of getting a good home loan? I know
about opening a secure bank card, how do I go about doing that? what
company are good? and what company I should stay away from?
Thats pretty much it. If I can get some advise, I would greatly
appreciate it.
The only way you will know for sure is to go to a mortgage
lender (or three) and ask to get "pre-approved". They will
run through your situation, and tell you the real deal.
A 580 is pretty weak, but with your savings and income, you
will probably qualify for a brokered loan, perhaps at 2 or
3 percent above the market rate. Who knows until you ask.
Keep in mind that $60K in income is not going to support
the kind of payments for a very expensive house. Think
starter house.
As it turns out, renting is a great deal right now. Many
rental properties are renting for far less than what they
should cost based on their market value. Perhaps your
best strategy would be to find as cheap of place as you
can to rent for a few years. This will let you build up
more cash for a better downpayment, and time will elapse,
which will dramatically improve that lame credit score.
It always looks better on a credit record if you pay back
your charged-off debts. That especially helps when you
are iffy, and a human has to decide whether or not to
grant your loan. Very few people, however, bother to
payback their creditors after a charge-off or discharge,
but God is watching and taking notes.
I appreciate the feedback. I am gonna go to a lendor but just want to
get some straight answer and facts before I do. I am not looking to buy
an expensive house, just something around 250k or so. The company that
I works for is willing to help me with a down payment. My question is,
how much should I put down? I know if I put down 20 percent, it will
look attractive to the loan officer considering my bankruptcy. I have
heard that some leader will oversee the bankruptcy after 3-4 years if
you show them that you take good care of your money and what not. Is
that true?
When you say pay back your charged-off debts? you mean to tell me to
call the creditor and ask them that I am going to pay them back even
after it is being discharged? wouldn't my credit history still be the
same after i do that. I know I have made some mistake in college but it
happens and now I have to deal with it. You live and learn. Thanks for
you input...anymore advise is greatly appreciated.