A bankruptcy filing can deliver a devastating blow to your credit scores, but it doesn’t mean you have to wait 10 years before you can qualify for a mortgage like some of the bigger banks dictate!. Many consumers who have filed for bankruptcy have been able to obtain a mortgage, although it may at a slightly higher rate than someone qualifying for a prime or "A-paper" loan.We call them "band-aid" loans as they help you heal and recover on your way to a fresh and well established financial future.

While credit card companies may care about what happened before you filed for bankruptcy, many mortgage lenders are more interested in your recovery — what you’ve done since your filing. It won’t happen over night, but here are some tips and things to keep in mind when you inquire about a mortgage with a blemished credit history:

Give us explanations. No mortgage lender is going to ignore the fact that you’ve filed bankruptcy and we will likely want to know the cause of the filing. We will be particularly interested in whether the same situation could happen again. Your chances of being qualified are much better if your bankruptcy was caused by a single event such as a loss of employment or a death in the family, than if it was the result of “just spending too much.” But no matter the case there is a loan for you. We can help!

We asked that you be prepared to help us understand your situation and how we can determine the best loan for you. Have your bankruptcy discharge/dismissal paperwork available so we may compare that to your credit report findings. Whether Chapter 7 or 13, almost all borrowers qualify even 1 day out of bankruptcy.

Demonstrate good money habits now. Many people who file bankruptcy swear off credit altogether, however, it is important to reestablish your credit rating. Get a secured credit card or take on some sort of loan — furniture, a car or a major appliance — to demonstrate that you are able to make timely payments. Make sure you are making other payments (utility bills, cell phone, etc.) on time as well. You won't turn things around in a year but your credit score will improve over time.

Dispute any credit report errors. There’s no need to add to your troubled credit history with errors on your credit report. Get a copy of your credit report from each of the three major credit reporting agencies: Equifax, http://www.equifax.com; Experian, http://www.experian.com; and TransUnion, http://www.tuc.com. If you encounter any errors, inform the CRA in writing what information you believe to be inaccurate and request deletion or correction. If you feel better with one of our professional mortgage advisors helping you in the process, we are just a phone call or email away!

Let US shop around for the Best Program. There are many alternative lending sources — also known as B and C lenders or non-prime lenders — that provide mortgage financing for someone with a damaged credit history who is sometimes considered a “high risk” borrower. These types of lenders typically reduce their risk in making loans by charging borrowers a higher interest rate and sometimes additional fees. NOT WITH US!!! In fact, many lenders have “comeback” loan programs for people recovering from bankruptcy that often give the borrowers more options than they ever imagined. You should allow us to review your situation and let you know what options exist.

Live within your means. Even non-prime lenders won’t risk loaning you money for an opulent oceanfront mansion. Think small when the time comes to look for a home. Smaller homes often mean smaller mortgages. Let us help you determine your limits with professional upfront mortgage advise. Refinancing can be stressful as well and we have many programs available that allow you up to $500,000.00 cash out with limits as high as 100% loan to value.

The Last and Most Important Step. Although you might seem candid about your credit history, we will be upfront, considerate and forthright with our diligence to find the very best loan for you. Most mortgage officers shy away from "working" for their income but we live to build trust and "customers for life". Let us show you the bright future of real estate ownership or help you consolidate debt and get you on the road of financial recovery. No good foundation ever crumbles. Our mortgage advisors are here to pave the way, don't hesitiate.....call today!