May 08, 2010

While buying a home after bankruptcy

Buying a home after bankruptcy is really a tough issue. When filing bankruptcy you must be aware of this fact. If you have planned for buying some property within a few days after filinig bankruptcy, you definitely are going to face a big trouble. If you are still going through the process of bankruptcy filing, it will not be possible for you however to borrow money. Nobody wants to lend money to a person having a history of bankruptcy. You have to wait until your financial problem is fixed. But you should know some basics while buying a home after bankruptcy. Check out the rest.

Usually, lenders consider a two-years time -period from the time of bankruptcy discharge to approve a mortgage loan, for the people who are buying a home after bankruptcy. Though it is possible to rebuild your credit within 24 months of bankruptcy if you follow some steps. And thus, you can convince a lender to approve your mortage loan even after bankruptcy.

Rate your credit after Bankruptcy :

Normally after filing bankruptcy, your financial stability reach an end. So buying home after bankruptcy will need a detail analysis of your instant condition of credit.
Your experience will teach you how not to get into the debt-trap as well as how to keep your credit in order. So, rate your credit first while thinking of buying a home after bankruptcy.

Try to rebuild your credit score :

Financing for a home is a pretty big investment. So, after bankruptcy, try to reform your credit score. Remember, while you are buying a home after bankruptcy, to approve a mortgage loan lenders will put their attention mostly on 2 things - the down payment and your income verification. If you need within 24 months, you have to show a transparent and clear payment history of your own. If you need to have a down payment,and you have even 3-5% to use, it will be easy for you to get approved.

Your credit report must be clean enough. Contact the credit bureau if your credit report shows any type of discrepancy. Make sure all the problems are rectified while trying to rebuild your poor credit score better for buying a home after bankruptcy. I can suggest you two ways - secured credit cards and installment loans. A secure credit card gives you the opportunity to handle a credit amount within your deposited amount. Thus you feel more secure. And an installment loan is a kind of loan which gives you a chance for making your payments in easy , small intallments and obviously at proper time. All these will help you to prove to the creditors that you can be trusted for paying back within right time.

Whatever be your way-out, be very careful while buying a home after bankruptcy. Check out all the interest rates offered by different lenders, compare them and then choose. It's a major decision. So, think first and then decide.

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