Blessings From Home

The Home Buying Process

I'm not sure if I've mentioned this fact in previous entries, but in October of 2005 my husband and I filed bankruptcy. We gave up our home, our new car, and a lot of bad debt. We were given a chance to start over. We moved in with my folks for a short time and then went from there to an apartment in a bad part of town. I was so miserable. From there we moved into a rent house, which is where we're living now. The house is okay, but our landlords are not very nice. Every time something goes wrong, they blame us and chew us out for whatever it might have been. Besides all that, I feel that we are throwing our money away renting, because we will never attain anything from it except for a roof over our heads for a few months, but nothing long term. So after filing our taxes this week, we found out that we are getting quite a large return, and since we don't have any debt to pay on as of now, except for utilities, food, etc, we decided that maybe we could use it for a downpayment on a house. So the process has begun, I spoke with our real estate agent and she referred me to a mortgage specialist and I'm going down to pick up an application for credit. I have been eyeing houses on the web in our area, and although there are several for sale, they are all so much higher since the last time we purchased a home. I did see one...3 bed, 1 bath, on 5-10 acres with a few extras, but it was 108,000, and although that may be cheap where some of you live, here and for us, it's kind of high. I'm very nervous that we won't be able to get pre approved for a loan right now with our past and I'm also afraid if we do, it won't be for enough to buy a house that would work for us, or that the payment would be so high that we couldn't manage. Have any of you had any experience with buying a home after a bankruptcy? I'm just so nervous about the whole experience. Well be blessed.

Untitled Comment

{ 02:59, Wednesday, February 21, 2007 } { Posted by sweetie }

My dear friends did. They found a lender after 12 months, and knew that they would need to keep their credit perfect so that after two years they could refinance at a lower rate. ...it has been seven years now and they are now officially at a "good" credit rate level. One thing that caught them off guard was the lender required that they get and keep a tiny credit card and pay its one purchase balance per month to rebuild their payment record....in their case they ran groceries through it and paid it one week a month.
The interest rates are what get you, not finding a lender, many lenders will go again with a downpayment, job, and stability since the bankruptcy, but what you must shop for is the best situation for you in the loan...and know that you may need to refinance if the rate is horrid.
hugs
sweetie