Declaring a bankruptcy is not a very pleasant event, let alone the stress that comes with it, but destroying this dream is not an option. It may sound impossible to get a mortgage after bankruptcy; however, it is possible to achieve if certain aspects are followed. Knowing the kind of parameters that lenders look at and trying to actively work on rebuilding credit ratings one can achieve the dream of having a house even after going through a bankruptcy.
Here, we will reveal actions you can take to improve your likelihood of getting a mortgage after bankruptcy. We will then look at the requirements that are necessary when applying for a loan most of which includes the credit score, income and employment record of the borrower. We will also give advice on how one can repair credit and get his/her financial status better as to be considered for a mortgage loan. However, this does not have to be the case since with knowledge and proper procedure, you can also get a mortgage and own a home.
The guidance that should be followed in an effort to attain a mortgage after bankruptcy
Primarily, there are some measures to be taken to restore the credit history after the declaration of the bankruptcy. This can be achieved in a number of ways for instance paying all the bills in time, using credit card moderately and refraining from taking new loans for example. Perhaps it might also not be a bad idea to apply for a secured credit card or applying to be an authorized user for another card to boost credit.
Another essential factor is also to save for a deposit. Having a larger down payment can go a long way in convincing the lenders that you are indeed serious with the purchase you are making and thus lenders will be less risky to lend you the balance amount. Further, accumulating the money for the down payment is also helpful in increasing one’s stability and revealing the capacity to manage the money responsibly.
One thing that must be taken into consideration when applying for a mortgage after bankruptcy is to find a lender that handles clients who has passed through the bankruptcy process. Some of these lenders will be in possession of knowledge on such type of emergent circumstances and may be flexible with you as compared to the normal lenders.
It can also be useful to have a co-signer when getting a mortgage before applying successful for a loan with a credit check. A co-signer is a securing that pledges to repay the loan if you are in a position that you cannot repay the amount borrowed. Fortunately, credit approval especially after a bankruptcy is easy if one has a good co-signer.
Another source to contemplate is an FHA loan, the Federal Housing Administration loan. As to credit scores, FHA loans are liberal and hence can be easier to secure than conventional mortgage loans. However, the applicant has to remember that, as popular as they are, FHA loans entail higher interest rates as well as certain fees.
The final tip regarding the application of mortgage is that one does not need to lose hope or give up during the application process. In so doing, this informed that though it may take longer time and energy to acquire a mortgage after declaring bankruptcy, it is however achievable.
Thus, it is possible to obtain a mortgage after bankruptcy if sufficient amount of time is dedicated to planning and problem solving. So, bearing in mind the idea for credit repair, the necessity of a down payment, cooperation with special lending companies, the possibility of a co-signer, FHA loans, and a few more tips, one has a comparatively high probability of becoming a homeowner after bankruptcy.
Finally, there is the issue of time when getting the mortgage, it is long process one should not give up easily. It is true that it may also take a little while and require a lot of effort to secure a mortgage after going through bankruptcy but it it is not an impossibility at all.
Thus, whether individuals can secure a mortgage after bankruptcy depends on the set goals or expectations and the strategies that they employ. Mortage after bankruptcy is quite possible by rebuild your credit, saving money for down payment, cooperating with special financing companies, thinking about co-signer, choosing FHA-loan and patience.
To conclude, it is possible to get a mortgage after declaring bankruptcy but the process is going to be bit long one. Thus, it is possible to increase the success possibility of a loan approval by enhancing your credit rating, saving for a bigger down payment, and collaborating with a loan provider that has experience with buyers who had filed for bankruptcy in the past. But to own a home, try as much as possible be patient and persevere, you will eventually get there.
