Is it possible to buy a home after filing bankruptcy?

 

buying home after bankruptcy

The answer is yes!

There are a few things to keep in mind.

Bankruptcy has wiped out your debts but has also taken a chunk out of your credit score. In order to bring your score back up, you must prove you can use credit responsibly. Taking out a credit card is a good way to start. Keep the balance low, never exceed 30% of the limit, and pay the balance off at the end of each month. Also, make sure you pay all your bills on time, not just credit cards. Missing a car payment could set you back six months.

There are many factors to consider when trying to get approved for a loan. Talk with your Realtor or Mortgage Advisor. They are qualified professionals willing to help you through the process. They know what types of loans are available, the down payment required and the current interest rates. They can also guide you on how to improve your chances of obtaining a loan.

Keep in mind, many lenders won’t approve a loan unless the bankruptcy has been discharged for at least two years. Use this time to improve your credit rating and save toward a down payment. Patience and persistence will pay off!