Mortgages After Bankruptcy Discharge

Approval of mortgages after bankruptcy discharge with poor credit

All people who file are concerned with the impact of bankruptcy upon their future potential. One the most apparent effects of discharge is noticed in credit ratings. The day a filing appears, credit rating s plummet. Yet receiving approval of mortgages after bankruptcy discharge is not as difficult as most creditors would lead the general public to believe. This is because mortgage lenders look to the security of the underlying collateral for repayment, rather than rely upon a 30 promise to pay from current earnings. Realistically, because of historic flucuations in employment status, goals and commitments, as well as life emergencies, few people are capable of repaying a mortgage upon demand.

The application and approval process

Online mortgage approvals are common. Simply fill in the blanks, and a lender's computer will automatically assess your property, credit rating, and financial ratios. Be aware however that these automated software programs are perhaps the most conservative in assessing risk. For special circumstances, a personal application, meeting with the actual loan officer, will produce slightly better results. This is because loan officers are familiar with problem areas and can suggest changes in the application before submission. In many cases, it is not that actual history itself that fails to qualify, but rather a failure of the applicant to present their history in a format that complies with software requirements.

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