If you are looking for a subprime mortgage and have the added disadvantage of having recently gone through a bankruptcy, lenders will know you are vulnerable and many will use this to their own advantage, duping you into the highest rate they possibly can.
In reality mortgage loan requirements after a bankruptcy are basically the same as any other mortgage loan, except for perhaps the down payment. For the first two years after a bankruptcy it will be exceptionally difficult to find a mortgage loan that does not require a 50% down payment. After two years, if you have made efforts to improve your credit score, finding a mortgage loan should not be as difficult and the down payment requirement should be around 20%.
When searching for subprime mortgage lenders keep in mind that in most states mortgage brokers don’t have to be licensed and as such in many cases these brokers may have no idea what they are doing. Many will most likely not have your best interest high on their priority list.
Of course not all bad credit mortgage lenders are evil. There are those who genuinely want to help people out, build a reputation for themselves and in turn win referrals. If you are searching for a loan, research on your part is extremely important so you will be able to recognize a hack from an expert, a rip-off artist from a professional. Using referrals from friends, colleagues and neighbors is a good start.
While shopping around you don’t want to accumulate inquiries on your credit report. If you don’t give up your social security number they can not do a credit check. Most mortgage brokers will want a price quote first after which they will then begin the application process. If a broker does this the other way around and requires you to fill out an application that includes your social security number, then this is no longer shopping around, you are being locked in with a broker and will then be limited to the offers they alone present to you.
You are not alone, millions of people file for bankruptcy every year. After a bankruptcy, the best thing you can do is wait. Use this waiting time to petition and make corrections to your credit report. If after two years you have had some success cleaning up your credit report then go ahead and begin the search for the best subprime mortgage you can find. Even if your credit is still bad there are plenty of bad credit mortgages available.