Know Your Credit Rating

Your credit score is one of biggest factors in determining points you will pay for your loan. People with scores between 620 and 800 have near perfect credit and will have lowest rates and fees. Scores between 620 and 550 mean an interest rate or two higher. 600 is usually cutoff point for 100% financing. Scores less than 550 mean mortgage interest rates are up to 5% higher with up to five points. Lenders will also require a down payment between 5% and 20%

You can find your score online along with your credit report. This is a good time to make sure all information is correct on your record. Any discrepancies should be checked out and corrected before applying for a loan.

Know The Fees

After bankruptcy most lenders want you to wait at least 2 years from time of bankruptcy discharge before they will consider you for a mortgage loan. After two year waiting period is over, you should be able to get financing easily. You should also be able to get 100% financing as well. You can usually achieve this as long as at least most of your payments have been reported to credit bureau as having been paid on time since discharge of your bankruptcy.

If you are looking to get a mortgage loan after bankruptcy sooner than 2 years from time of discharge, you will need to have almost flawless payment history since your bankruptcy discharge. Also, you may need to have a down payment. If you have even 3-5% to use as a down payment, that may be enough to help you get approved.