Each year, thousands of people file for bankruptcy and the opportunity for a fresh financial start. While bankruptcy may put a temporary damper on financial freedom in its immediate aftermath, it isn’t as limiting as people believe. With proper money management, it’s possible not only to get credit cards after filing for bankruptcy, but even to make major purchases such as a car or mortgage as well. As long as you stay current on your bills post-bankruptcy, your improved credit will easily allow you to get a mortgage loan.
Steps for a Post-Bankruptcy Mortgage
Remember that mortgage lenders typically wait 2 or 3 years before considering financing for someone who has previously filed for a Dallas bankruptcy. While it is possible to find a lender before the 2 year mark has elapsed, it can be more difficult and be accompanied with unfavorable interest rate deals. Before reapplying for a mortgage after your case, be sure to increase your credit score. Also remember to maintain good employment history, home value, and debt-to-income ratio. By keeping all of these factors in check, you’re keeping up a more favorable profile for potential lenders.
Once you begin applying for a mortgage after your Dallas bankruptcy, remember to:
· Be patient. Because of your financial history, you must understand that many lenders will be hesitant to offer you a new secured loan. However, if you’re able to prove your income, better money management, and a stronger financial profile, you’ll be able to get a loan – just be willing to wait for it!
· Consider a mortgage broker. While you don’t need a mortgage broker to apply for a mortgage after a bankruptcy, this person will help you collect and disseminate the documents you need for the transaction.
· Start preparing now. You’ll want to be able to make a down payment for your mortgage without damaging what you have saved in the bank. By purposefully saving money now, you’ll be able to make the down payment without worrying about your budget.
· Keep a paper trail. The sooner you apply for a mortgage after bankruptcy, the more paperwork the potential lender will require. Keep paycheck stubs, banking information, assets, a copy of the bankruptcy discharge, and anything related to your financial profile.