You have found your dream home and you are eager to get a mortgage, move into the property and start enjoying life there. However, there is only one problem standing in your way – the fact that you have been through some hard financial times in the past.

If you (or your partner) have been previously declared bankruptcy, will this affect your chances of being able to buy the home you want?

The good news is that it is still possible to obtain a mortgage even if you have been bankrupt before.

Here are some tips that will help you to increase your chances of mortgage success:

  1. Choose the right lender. Some lenders may not approve your new mortgage if a bankruptcy shows up on your credit history. However, there are some that do, as long as you are able to prove that you have the income to make your payments.
  2. If your bankruptcy was caused by factors that are beyond your control (and not by poor money management), it may be easier to get a new mortgage. Normal waiting period is between 2-4 years depending on your situation. To figure out where you lie, explain your situation with a mortgage consultant.
  3. When you are buying a home after bankruptcy, try to save up as much of a down payment as possible. You can still get down payment assistance with a bankruptcy, but you’ll need to make sure that all qualifications are met within the waiting period so you can ensure you get the right assistance. To see what you qualify for with down payment assistance, visit www.yourloanstartshere.com.
  4. Build up your credit again by always paying your credit card bills each month along with any other debt. The higher your credit score, the better chance you will have of being able to obtain a mortgage. To see what your credit score, visit www.yourloanstartshere.com.
  5. Avoid writing checks that you think might bounce, as this shows up poorly on your credit report as well. Additionally, any retirement plans or 401 (k) assets you have will make your credit look good, and getting these accounts set up may help you obtain a mortgage.
  6. Don’t switch jobs right before applying for the mortgage. The lender wants to be able to see that you have a reliable source of income and that you have been at the same line of work for a good amount of time.

 

Keeping these tips in mind will help you to obtain a mortgage even if you have been bankrupt before.

For more information about buying a home and securing your next mortgage please contact us today or visit www.yourloanstartshere.com.

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No Comments on Oct 14th 2013

Are you already pre-qualified with someone and they don’t offer down payment assistance?

This can be very frustrating because you have already started the home buying process. Don’t be discouraged because your lender can’t offer you down payment assistance.

Even though you have been pre-qualified with another lender, this doesn’t mean that you can’t find a lender that will help you set up down payment assistance.

We recommend that you get pre-qualified with a mortgage lender who offers down payment assistance. We know that many of you are scared to get two different approvals as you think it will hurt your credit score. This is not true. Your credit score won’t be affected by two different mortgage companies checking to see what you qualify for. It will be hurt if you have it checked more than that within 30 days by multiple companies, but getting a second opinion doesn’t hurt your score.

Getting a second opinion on a mortgage is like getting a second opinion for the doctors. You want to make sure you get the right information and the right help. If you feel that you can’t be helped with one lender, why not see if you can with another?

If you are still nervous about having two companies run your credit, we recommend that you research mortgage companies that offer down payment assistance before getting pre-qualified.

To see what you qualify for with down payment assistance, please contact us or visit www.yourloanstartshere.com.

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No Comments on Oct 11th 2013

It is the assumption that you need a lot of cash to qualify to purchase a home.  This isn’t the case anymore.

With having the down payment assistance programs, you are able to pay nothing to very little for down payment on a home.

Just because you don’t have a lot of money in the bank now, and because you aren’t able to put money down for a down payment on a house doesn’t mean you shouldn’t try to get a home.

For more information regarding which down payment assistance is right for you please contact us.

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No Comments on Sep 23rd 2013

Most people assume that just because they have bad credit they can’t afford a home. This is not true.

While most mortgage companies want a certain credit score to have you qualify with them, this doesn’t mean that you can’t get a mortgage with a bad credit score.

Not everyone’s situation is the same, so just because your friend was able to get a mortgage with her bad credit doesn’t mean you will. It all depends on what is on your credit and how low your score is.

There are always opportunities to either increase your credit or get you down payment assistance programs with your bad credit.

If you would like to know what your credit score is or if you qualify for down payment assistance please contact us today.

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No Comments on Sep 19th 2013

Here are the most common myths in the mortgage world.

Myth #1: I shouldn’t look/apply because I am not buying for another 1-5 years

False. Just because you are not thinking of buying a home for a while doesn’t mean you shouldn’t see what your options are. By applying for a loan you can determine what you can qualify for when you are ready and what your credit score is. By knowing this information you can either work on saving up for a down payment or work on increasing your credit. Contact us today to get started on your home buying process.

Myth #2: I need to save a lot of money for a down payment.

False. There are many programs out there that can help you with getting down payment assistance.  With these programs you can have a down payment for little to nothing for a down payment. Please contact us for more details.

Myth #3: I need to have an excellent credit score/history to buy a home.

False. Although most companies do want a particular credit score, this doesn’t mean that you need to have a high score to get a mortgage.  Some down payment assistance programs require a lower minimum credit score. Most lenders want you to get the home of your dreams so if your credit score isn’t at excellent but is good you can still get a home. To look at your credit score and see what you qualify for, please contact us today.

Myth #4: I need to have a lot of income to buy a home.

False. Just because you don’t make enough doesn’t mean you can’t have a mortgage. Although there are some minimum requirements, with the down payment assistance programs you can find a mortgage that is right for you within your monthly budget. Another option would be have a co-borrower to help you with your mortgage. This way you can still afford the home of your dreams. To discuss your options with low income please contact us.

Myth #5: I have such bad income/credit no one will talk with me.

False. Most lenders are willing to talk with you about all your options and how to increase your credit score. Even though you may not have a lot of money or good credit this doesn’t mean that lenders can’t help you find out how to increase your credit or what other options there are for you. Although there are some lenders that won’t talk to you because of this, but not all of them will. To discuss your options with your credit and income please contact us today.

Myth #6: I don’t know where to start so I won’t start at all.

Just because you don’t know where to start doesn’t mean you shouldn’t start looking and getting answers to your questions. It is a very busy and confusing process, but most mortgage lenders understand and can help you with any questions you have. Please contact us to get started.

Myth #7: I am not a first time homebuyer so I can’t receive down payment assistance.

False. Just because you have already bought a home or are in a home currently doesn’t mean you can’t receive down payment assistance. There are programs for all sorts of people and situations along with everywhere in Minnesota.

Myth #8: I am already pre-qualified with someone else so I shouldn’t see about other lenders.

False. Not every lender is the best option for you. Some lenders don’t offer down payment assistance programs and some lenders can’t offer you better rates upon your situation. Please contact us today to be pre-qualified within 24-48 hours.

Myth #9: All realtors are just out for money.

False. Realtors want to be able to find that perfect home, because they don’t get paid until you are happy. They are paid on commission, but that doesn’t start until after you find your home and most of them are willing to go to great lengths to help you find the home of your dreams. If you would like to talk to a realtor today, please contact us.

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No Comments on Sep 18th 2013

“I have just started looking and I don’t know what I am doing.” “I have just begun my search and not sure where to go or what to do.” “I don’t know where to start.”

These are the most common things people say when they start house hunting. This can lead to many people being frustrated and confused and stop looking at homes all together.

 

We understand that it is a overwhelming and confusing process, but by following these few steps you will be knowledgeable about where to go.

 

Step 1: Get pre-qualified. Before you start looking for your dream home, you need to know how much of a house you can afford. It isn’t beneficial to find a great big expensive house if you can’t afford it. If the mortgage lender you are with doesn’t offer any down payment assistance programs for you, try another company. Make sure that you shop around to get the best rate and price for you, we recommend that you get pre-qualified with two different mortgage companies. To get pre-qualified within 24-48 hours, please visit www.yourloanstartshere.com.

 

Step 2: Find a Realtor. After you know what you can afford you can then start looking at homes. Although finding a home in the paper or online is great, a Realtor is able to help you find the specifics that you want in a home, by having access to a larger house search. Once you talk with a Realtor you can then be put on a free home search, that fits your specific criteria.

 

Step 3: Find the perfect home. Once you find the right home you are then able to put an offer in and get the home of your dreams. Your realtor will be able to explain more about this process to you once you find the home of your dreams with the amount that you can afford.

 

Step 4: Get the mortgage. By being pre-qualified with your mortgage company you can then start the loan process and get the down payment assistance that is right for you. Remember that even if you are pre-qualified with someone, you can still search for a mortgage lender that is right for you.

 

To get more information and to get started today please contact us.

 

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No Comments on Aug 26th 2013

We all have been a situation where our credit score is bad and yet we want to get a home or a car.

So how can we improve our credit score?

By following these few tips.

Tip #1. Be patient. Remember that improving your credit score will be like losing weight. You may not see the results right away but it is the long term benefit of your good habits that will make all the difference. There are no quick fixes to improve your credit score and best way is t to be responsible over time.

Tip #2. Check your credit report for errors. If you don’t know what your credit score is, then you will need to obtain a credit report. You can request a free copy of your credit report and check it frequently. There might be an error on the report that is making your score appear worse then it should. If you do find an error, you should contact the credit bureau to fix this error.

Tip #3. Set up payment reminders. If you have trouble remembering to make your payments by the due date, this can be one of the biggest negative factors bringing down your credit score. You can ask your bank to set up convenient reminders through the online banking portals, so that you will receive an email or text whenever your payment is due.

Tip #4. Don’t overspend. Most people get in trouble with their credit score because they over spend on either their budget or their credit card limit. One way to make sure you don’t over spend is to make a budget for yourself and keep it where you can see it. This budget will help you see what you need to pay and what money you have left over to save. The limit on the credit card is there to protect you from going over what you can afford, but most people tend to ignore it. By ignoring this limit you can get decrease your score. One way you can make sure you don’t spend over your limit is to not spend money you don’t have. If you can’t afford to pay the credit card payment, then you can’t afford to buy that item on your credit card.

Tip #5. Make overdue payments or paying down credit cards. One of the most common ways that hurt a person’s credit score is having payments overdue and not being paid. If this is you, then you need to pay the overdue payments. If you have credit cards that are maxed then you need to pay them down. This will help you by telling the credit bureaus that you are trying and that you are responsible.

 

While these are only a few of the ways you can increase your credit score, these will help you in the long run.

Any questions or concerns please feel free to contact us.

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No Comments on Aug 8th 2013

More and more people want to know what sort of programs are out there and do they qualify for those programs. A lender can’t determine which program is right for you without knowing more about you.

 

SOME of the programs out there that Minnesota offers are:

 

1. Minnesota Housing Start Up Program-This is state wide program for low to moderate income first-time home buyers. This program offers affordable fixed-rate loans and help with down payment and closing costs for eligible borrowers.

To see if you are eligible for this program please go to www.yourloanstartshere.com to fill out a loan application or go to www.mnhousing.gov.

 

2. Minnesota Housing Step Up Program-This program is for non-first time home buyers who want to purchase or refinance a home. This program offers affordable fixed-rate loans and down payment assistance and closing costs for eligible borrowers.

To see if you are eligible for this program please go to www.yourloanstartshere.com to fill out a loan application or go to www.mnhousing.gov.

 

3.County Specific Down Payment Assistance – Some counties offer down payment assistance programs. Not all counties offer down payment assistance, so make sure the county you want to live in does.

You can contact us or your particular county to see if this assistance is right for you.

 

 

The ones mentioned above are the most common assistance in MN, since not all of the down payment assistance programs are mentioned please talk with us to see which ones you qualify for.

No lender can determine which assistance is right for you without reviewing your information.

If you would like to know which assistance you qualify for please contact us or go to www.yourloanstartshere.com to fill out the free online application.

 

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No Comments on Jul 12th 2013

 

Everyone is wondering how to get down payment assistance. This is based upon what you qualify for, which can determine which program is right for you. There is not one program for everyone, because each person’s situation is different.

 

The first step would be to see which programs you qualify for. The best way to do this is to talk with a mortgage lender, who will be able to find out what programs you qualify for based upon certain factors that are needed. The best way for them to see which program is best for you, is to get you pre-approved. To get pre-approved within 24-48 hours, please go to www.yourloanstartshere.com.

 

The next step would be to sit down with a mortgage lender to discuss which programs are available to you. Once the mortgage lender has all your information from being pre-approved, they can then tell you what you qualify for. The mortgage lender cannot discuss which program is right for you without being able to review your information.

 

The last step is getting the mortgage. Once you are pre-approved and have found a home you love, then the loan process has been started. Through the loan process the down payment assistance will be applied.

 

Please feel free to talk with one of our mortgage bankers with any questions you may have regarding getting the down payment assistance in Minnesota.

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No Comments on Jun 27th 2013

How many of us have sat down with a mortgage lender and then been told that they can’t get down payment assistance because the lender doesn’t offer it?

We have all been there and been frustrated with this situation. What we recommend is before you finally purchase your dream home, shop around diligently for a lender that you will connect well with.

It is ok to get different quotes from different lenders, just be careful as to how many lenders you apply with. Each lender that you give your loan application to will pull your credit to see what your score is and how much you qualify for. You do not want too many lenders pulling your credit as it could lower your credit score.

What most people don’t know is that there are down payment assistance programs for every part of Minnesota. Most lenders are able to get you pre-approved for every type of assistance you may qualify for, but there are many lenders that are unable to offer any programs that may benefit a first time home buyer.

Do you qualify for these programs? Which programs do you qualify for?

There are a many factors that lenders look at to see if you qualify for down payment assistance. Some of these factors are income, minimum credit score, and whether or not you have owned a home within the last 3 years. It is impossible to see what you qualify for without these factors availabe for a lender review.

If you want to see exactly which programs are available and which ones you may qualify for, please call or e-mail us today and we can get you set up with a free consultation with one of our mortgage bankers.

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No Comments on Jun 5th 2013

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