Mortgage Loan After Bankruptcy

Qualifying for a mortgage loan after bankruptcy cases

Comparative shopping is an essential step toward discovering the best mortgage loan after bankruptcy. Many lenders anticipate that applicants who recently filed expect to pay higher rates. One of the most effective strategies for finding the lowest rates available requires applying in person. In this way, a prior approval for the best rate can be provided to your mortgage officer, and clearly establish the upper range for your consideration. Not only will this disclosure emphasize competition for your business patronage, but it will also establish your due diligence. If applying online, first try to establish a contact person to discuss your application before submission, and rely this vital information.

Negotiating rate reductions

Most lenders offer the maximum rate the market will bear. When you notice a drop in interest rates, the decline indicates that lenders are experiencing difficulty funding loans at the old, higher rate. Lenders must fund new loans to remain profitable and constantly compete with the market for limited applications. The drop then becomes one of the best signals that lenders are eager to catch up by funding new loans, which may temporarily ease the approval process.

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