Speaking for myself, the first 2 years in real estate, I was not concerned about who my clients picked for a lender. After 4 or 5 transaction failures (with friends, relatives, the worldâ€™s greatest lender who helped grandpa), I became fed up with the errors of others. I changed my tune. I wanted to somehow gain some control of that part of the transaction if I could. I had confidence I could better determine who were the good mortgage brokers / lender -- much better than my clients. I knew the questions to ask. So, after many interviews, I picked a mortgage broker (a college graduate now with 23 years of experience) to refer as many of my clients to as possible. Since then, I have never had a transaction fail. Yes, some clients could NOT get loans. Ok by me. They are not facing the mess that so many in the US have found themselves in today. Sometimes NO (no financing or a different loan structure) is the right answer. We are supposed to be in the business of helping people, not telling them what they want to hear. Under both federal and state laws applicable to real estate, no MONEY can change hands between the real estate agent and mortgage broker for the purpose of gaining business (e.g., finderâ€™s fee, tied referral) , unless they want to lose their license. So, the MOTIVE is simple. Get the best and accept nothing less. Someone who is dependable and has a SOLID reputationâ€”one that my CLIENTS LOVE (tall order). I guess I am lucky. So are my clients. Now, how does your selection process stack up against that? Find a seasoned agent with credentials who you respect and see if they can help you with your decision. Experience with 50, 100 or even more transactions seems better than none.
If you have access to a local credit union, this is where I would suggest starting first. If you'll meet with a good buyer broker in your area they can also suggest excellent lenders whom you might speak with.
To find a grea broker in your area, I've attached a link to ablog I've posted here on Turlia not long ago that you'll wnt to read.
Good luck and happy house hunting.
Most Realtors also have some lenders they've worked with in the past that they might be able to reccomend, but always ask for more than one so you can compare.
I accept that my answer is not going to be the most popular but it will be honest. If you had a bk in 2005 your credit score is probably low. You may be able to qualify for a mortgage but you are not going to qualify well.
Furthermore, you will have all the negative trade lines assocatied with your bk filing, collection accounts, etc. You might want to begin with credit restoration services to clean up any old collection accounts and get those improved through the credit repair process. After your credit profile is cleaned up you can then get prequalified for a new mortgage and then start looking for a home.
There are hundreds of mortgage brokers that can get you an average mortgage with a low credit score.
There are hundres of realtors who can find you a home that you can purchase with a low credit score.
However, if you get your credit profile improved first you will then be able to purchase a higher priced home in a nicer area for the same monthly payment.
A good realtor will want you to not only qualify for a higher priced home but qualify well for a higher priced home. You will have the same monthly payment with a better credit rating in a higher priced home than you will with a poor credit rating in a cheaper priced home.
Imagine having a good credit rating moving forward. what will a good credit rating bring you.
Lower interest rates on mortgages
Lower interest rates on car loans
Lower rates for insurance
Lower rates for utilities (especially in your home state)
Positive results for job screenings.
Hope that helps.