Can You Get a Home Loan After Bankruptcy?
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Published by TOP4 Team
In this fast changing economy, it comes as no surprise if people are filing for bankruptcy or had undergone one. Times are hard and money is limited, thus, the need to suffice the needs of not only for oneself but for the whole family as well is very important. When it comes to residential real estate, individuals who are planning to buy a home but have declared for bankruptcy are hesitant. However, fear no more since getting a home loan after bankruptcy is very possible.
Your chances of getting a home loan after bankruptcy is more or less very positive. As long as you know how to increase your possibility to successfully qualify for a loan, you are good to go. Financial experts and real estate advisers both agree that getting a home loan even if you have declared bankruptcy is very promising.
Home loans are a very important thing to each home buyer since this will likely determine if one will successfully buy a house and become the legal title holder. Home ownership needs home loans or mortgage loans to be able to acquire this housing investment with ease. Thus, these loans were made available to all types of consumers.
The issue of bankruptcy does not limit a person to obtain such housing assistance. With a little time and action to make improvements in one's finances, getting this is as easy as buying clothes. If you have undergone such declaration and you wish to obtain a home loan, the best thing for you to do is to wait it out. Be patient and wait until the time of your bankruptcy is completed.
There are a few things you can do to get a home loan after bankruptcy. Here are some tips:
1. Be patient.
One of the worst moves you can do is to apply for a loan as soon as you have filed for bankruptcy. This is the biggest error most individuals make and this is a sure-fire way to automatically get rejected. Wait it out. Let it simmer first.
2. Rebuild credit history.
It is very essential that you improve your credit report and keep it in a top-notch score regularly. Generally, lenders will be very wary if you apply for a home loan and all your credit report reflects is bankruptcy. This instantly diminishes any possibility for your loan to get consented.
While waiting for the bankruptcy term to be over, the smartest thing to do is to build up your credit rating. In this way, you are 100% ready when the waiting time is over allowing lenders and lending firms to approve you such loans.
When repairing your credit score, the best action to do is to get some credit. Secured credit cards are the most effective to boosting up scores, these are more affordable, have low-interest rates and manageable charges.
3. Pay off debts on time.
If you want to prove to your lender that you are worthy of such loan, then do so by making on time payments. Avoid defaulting or else you will be back from where you started off.
Having a pristine payment history also clears off whatever glitches your credit score might have incurred in the past.
4. Have a steady source of income.
Having a job makes rebuilding credit score possible. This allows you to make meet payments on or before the deadline. Also, having a stable monthly income gives you chance to save up for your future loans.
5. Think about getting government loans.
Federal government loans are the best help anyone can get especially if one is going through financial hurdles.
A VA or FHA loan allows you to get a home loan that asks you only 3% down payment. Plus, government housing loans terms and policies are much more lenient and easy to work with.
6. Save up for unexpected costs.
While you are at it, it's best if you allocate money for upfront and closing costs, home insurance and tax charges, allowing you to have a cash reserve when the right time comes.
Obtaining a home loan after getting into bankruptcy is very possible. All it takes is for you to make the necessary steps to improve your finances and further on, enjoy its benefits.
Looking for a mortgage broker that can help you with your home loan? Consult Lendium today!