Contrary to popular assumption, getting a mortgage after a bankruptcy is not impossible. While you may not obtain the best loan terms you will still be eligible to borrow for a mortgage. The trick is finding the right lender who can offer the best loan for your situation.
Getting It Right
Before you run out and apply for a mortgage loan after bankruptcy, it is important to ask yourself whether you are really ready for the financial responsibility. Some people find their new found financial freedom from debts to be tempting and may get themselves in over their head too quick. Rather than risk ending up in mortgage debt or foreclosure, be sure you have considered how much you can afford to borrow in a realistic sense before shopping for a new loan.
The most important thing to remember when looking for a mortgage loan is to buy within reason. Despite being qualified to borrow more only buy a home with a monthly payment you can afford to maintain. Also, mortgages with bad credit often come with more stringent terms than a loan for someone with better credit and financial histories. Stay away from loans with variable or adjusting interest rates, instead find one that offers the lowest fixed rate with a payment you can afford.