Does the type of bankruptcy make a difference in the loan process?
Every person who files bankruptcy is considered a high risk. The majority of mortgage lenders do not sub-classify high risk applicants. Thus, the type of bankruptcy filed will usually not make a difference. Are my lender choices limited after I file bankruptcy? Yes. The majority of homebuyers have not filed bankruptcy. Thus, there are more resources and loan programs available to these persons. Nonetheless, plenty of lenders and brokers provide sub prime loans, which assist individuals with bad credit, recent bankruptcies, etc. Will the mortgage lender request a lot of details about the bankruptcy? Yes. Some individuals with a previous bankruptcy often feel attacked by the mortgage lender. Be assured that the lender handles every bankruptcy applicant the same. Remember, the lender is taking a huge gamble with you. Prior to lending hundreds of thousands of dollars they want to make sure that the borrower is prepared to repay the money. Do persons with a bankruptcy have more requirements
Every person who files bankruptcy is considered a high risk. The majority of mortgage lenders do not sub-classify high risk applicants. Thus, the type of bankruptcy filed will usually not make a difference. Are my lender choices limited after I file bankruptcy? Yes. The majority of homebuyers have not filed bankruptcy. Thus, there are more resources and loan programs available to these persons. Nonetheless, plenty of lenders and brokers provide sub prime loans, which assist individuals with bad credit, recent bankruptcies, etc. Will the mortgage lender request a lot of details about the bankruptcy? Yes. Some individuals with a previous bankruptcy often feel attacked by the mortgage lender. Be assured that the lender handles every bankruptcy applicant the same. Remember, the lender is taking a huge gamble with you. Prior to lending hundreds of thousands of dollars they want to make sure that the borrower is prepared to repay the money. Do persons with a bankruptcy have more requirements
