2. Once you have checked your credit reports, apply only to places that submit your application to many lenders. Every time your credit report is pulled, it will knock your credit score down a little. If you apply to a mortgage service that will submit your application to many lenders, then you only have one credit inquiry and can receive offers from up to 4 lenders per application.

Frequently asked questions are:

1. Will I have to make a large down payment? Not necessarily. If you can get your credit score above a 600, you should easily be able to get 100% financing, even if it has been less than two years since your bankruptcy or foreclosure. If your score is above a 580, you might still be able to qualify for 100% financing.

2. What kind of interest rate can I expect? Depending on your credit score and whether you have any down payment or not, I have heard of situations with a credit score as low as 585 with no down payment and an interest rate as low as 7.25%. That was quoted in March of 2005.

3. Can I get cash out? On a purchase, not likely. On a refinance, depending on your amount of equity, that is very possible.

After your home equity has been paid down to eighty percent or appraise value of home was obtained you are no longer required to keep private mortgage insurance. You should make sure you cancel your private mortgage insurance as soon as possible; many people do not cancel their private mortgage insurance as soon as they are eligible and end up paying hundred of dollars a year more than they need to be.