Expert: Dottie Worthington - 10/7/2007

Question
Ms. Worthington:

My husband and I have been discharged from our bankruptcy now a year and six months.  When we first started looking again we were living w/our parents to save cost for a down payment because our attorney stated that we would be available for a loan on our first day of discharge.  We tried this, and were pre-approved for $165,000 w/my husband's income only.  Yet, when we found our home at $145,000 they declined us at the closing.  They stated we needed to wait a year.  We did this once again a year later, and got declined again at the closing.  There was nothing on our credit that would have disturbed them except the bankruptcy.  Our scores are the same now as they were at that time.  We still range between 650-680.  We now have been leasing for a one year 1/2.  Our discharge will be two years in April.  We do not want to get our children's hopes up again for a new house. Can you give any suggestions?  Our credit scores still range within 650-680 and we had several credit lines that have been paid in full to show our responsibility w/credit and with two credit cards that we only keep a minimum of $35 on to show even more credit responsibility.  Our income to ration is less than 25%.  With both of our incomes we make at least $100,000.  Do you think we will qualify again after waiting two years from our discharge with the changes in the mortgage lending?  And if so, how much do you think we can afford?

Answer
I would contact a reputable mortgage company and disclose all of this. Ask them to qualify you and tell you what price house you can buy, before you go out and look. Where do you live? I may be able to help you find a mortgage officer. Tell them you don't want a pre qual, you want an approval letter.