How To Own A Home With Low Interest Rates And A Low Down Payment, Regardless Of Your Credit

Home ownership is one of the key ingredients to building wealth in this country. Take any 100 people at retirement age and here is what you will find.

1 in 4 will be wealthy and financially secure
5 will still be working to make ends meet
36 will be dead
54 will be dependent upon family or charity for their support

By owning your own home you can start to build equity and create wealth. You will also no longer need to put up with noisy neighbors and landlords who don't fix things and keep raising your rent.

But What If I Have Had a Bankruptcy or Other Credit Problems?

Let me make something very clear here:
YOU DO NOT HAVE TO PUT DOWN A LOT OF MONEY OR PAY HIGH RATES EVEN IF YOU HAVE HAD A BANKRUPTCY OR OTHER CREDIT ISSUES.

Bankruptcies are at an all time high. These occur for many different reasons:
1. Divorce
2. Business failure
3. Job layoff
4. Loss of income for work injury
5. Illness
6. Death in the family
 
I recently had a client come in who had filed a bankruptcy and was discharged 1 year ago. During our meeting she explained to me that she and her husband separated and he was obligated to pay her child support. During their marriage they had made bills which they were able to pay with both incomes. Now, they were separated and she was left with the bills to pay on her income alone.

To make matters worse for her, he didn't pay the child support he was ordered to pay. She was left with no choice but to file bankruptcy.

There are several MAJOR MYTHS that buyers, realtors and even some lenders have about working with buyers who had a bankruptcy or less than perfect credit.

MYTH: You have to wait 7-10 years after a bankruptcy before you can get a home.

REALITY: Since there are 2 different types of bankruptcy filings, let's look at each one separately.

Chapter 7: You may be eligible for a mortgage 2 years from the date of discharge. HOWEVER, if your bankruptcy was due to a situation beyond your control and you have re-established good credit, you may be eligible after only 1 year from the date of discharge.

Chapter 13: You may be eligible after making 12 on-time payments. Also, you must get a letter from the trustee of the court that purchasing a home will not interfere with your Chapter 13 repayment plan.

MYTH: I don't have a lot of money to put down.

REALITY: If you are able to meet the standards I just mentioned, your down payment will be 2 %. If you are a veteran you may be able to obtain a mortgage with 0 DOWN.

MYTH: I will have to pay rates so high that I won't be able to afford it.

REALITY: We currently offer single digit low interest rates. Currently rates are at the lowest level in almost 30 years. It is a perfect time to buy a home with an affordable payment.

SO WHAT DO I DO NEXT
You may have heard the term pre-approved or pre-qualified. In the real-estate industry we do things a little backwards. Here is a very common scenario.

You the buyer decide you want to move. You call a realtor and start looking for a home. Finally, you find the home of your dreams and your offer is accepted by the seller. Of course you will want to do a home inspection to make sure there is nothing wrong with your new home. The cost of a home inspection is generally $200-$300 and is paid at the time the inspection is done.
 
Next, you will need to go to a lender and get a mortgage. At the mortgage application you will need to pay approximately $469 for an appraisal and credit report.

After 3 or 4 weeks you will learn if your loan has been approved.

If your loan was rejected you have now LOST almost $1000.00 because the fees you paid are not refundable if your loan is rejected.

BUT THERE IS A SOLUTION:
You can get pre-approved BEFORE you even go looking for a home. By being pre-approved you will know that your loan is already waiting for you and all you have to do is find your perfect home. You will also know how much you need to buy the home and what your monthly payment will be.

WHAT WILL I NEED TO DO TO GET PRE-APPROVED?
If you have had a bankruptcy or other credit issue, we will need to know why it happened and why you believe it won' t happen again in the future. We will also need to show proof that it was "beyond your control" and you had no other choice.

Here are some ideas:
* For spousal abuse, provide Police reports
* For medical bills, get an Ex-parte order
* If you had a work injury, provide proof of worker's compensation, a Doctor or Employer note, or a letter from worker's compensation attorney stating the date your first benefit was received and amount
* For job loss, provide proof of dismissal, a Lay-off notice, or unemployment office records
* For a business failure, provide tax returns for a most recent year if self-employed, and proof that you are no longer self-employed, such as current pay stubs and job verification
* For a Divorce (Divorce itself is not an acceptable Separation agreement
reason for bankruptcy; however, if debts were Divorce decree incurred with two incomes and now only one, bring W-2' s or 1040 for most recent year filing jointly pays, it can be a compensating factor)  
* For not receiving child support, bring a court order for child support and a printout from child support enforcement office showing history and arrearage.

Your next step is to call: Don Trader at 410-713-3101 and schedule a FREE 1 HOUR CONSULTATION and get the process started.

During this meeting we will discuss the mortgage programs that will best meet your needs. We will also try to make this program fit your needs and comfort level for a monthly payment and the amount you want to use to purchase your new home.

Also during this meeting we will run a full credit report. This is an extremely important part of the process. You may have heard horror stories about people who bought a home, applied for a mortgage and were told by their lender everything looked good. Three weeks later, their loan was denied because some bad credit showed up, that WAS NOT on the credit report during the first meeting.

WHY WE WON'T LET THIS HAPPEN TO YOU
There are 3 major credit reporting agencies in the United States: Equifax, TRW & CBI. When a lender runs a free preliminary credit report for you they will run 1 of the 3 agencies listed above. The problem is that not every creditor will report to the same credit agency. For example, your VISA card may report to CBI; your store charge card may report to Equifax; and your Credit Union may report to TRW.

During our meeting, we will want to run a FULL 3 agency credit report. This will allow you to know exactly what will be on your credit record.

This is the same report that could be used when you purchase your home, so you may not need to pay for it again.

If you have had a bankruptcy or other credit issue it is very common to have bills show up on your credit report as past due or behind, even if they were included in your bankruptcy or paid off in full. By having a full credit report, these errors can be corrected so you can get approved faster.

CALL NOW TO SCHEDULE 1 HOUR FREE CONSULTATION
Don Trader
410-713-3101

WHAT IF AFTER OUR MEETINGS I STILL DO NOT QUALIFY?
We have created a program called "The Get Mortgage Ready Kit." We will meet with you and customize a plan to get you pre-approved. The kit includes all of the information you will need to start getting pre-approved. We will then be available to answer your questions as they come up.

Every month you will receive a call to see how you are doing and to schedule follow up meetings until you are PRE-APPROVED.

(Mortgage Web Success, LLC., 2007)