My wife has no credit history and I have a bankruptcy on my credit report.
I'm trying to apply for a home loan but don't know where to start. We are first time home buyers with bad credit. Where do we begin?
Start with a local bank and speak with someone in the mortgage department. A good mortgage officer can tell you what options are available to you. Watch out for any "hard sell'" You may need to come up with a bigger down payment or pay a higher interest rate until your credit is repaired but make sure that any loan you get into is one that you can pay back. Make sure you have your emergency fund set up ad that you have no other debts. Your interest, principal, taxes, insurance and homeowner fees shouldn't exceed more than 40% of your gross income.
Find a good realtor and tell them your history. They can see if you are able to qualify before you waste time shopping. This preapproval process doesn't take long. Plus it will give you an idea of what you have to do to qualify, in case you get turned down. There is always tomorrow - so don't give up hope.
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