Many people are afraid to file for bankruptcy because they assume that it will permanently destroy their credit. While bankruptcy does adversely affect your credit, it does not affect it forever. You can qualify for a mortgage loan in as little as one year after the court discharged your case if you take the right steps. If you want to buy a house after bankruptcy and need a loan, here are several things to know that may help you get one.
Step 1: Visit a Mortgage Broker
The first thing you will want to do is talk to mortgage brokers. Brokers are not the same as mortgage lenders, so make sure you find a broker. A broker works with people to help them qualify for loans and finds them the best ones. The purpose of visiting a broker first is to learn what you must do to qualify for a loan after filing for bankruptcy.
Step 2: Wait the Necessary Time
The broker will ask when you filed for bankruptcy and what the discharge date is from your case. The discharge date tells the broker when you will be eligible for a loan. You must wait a specific time after the discharge date before applying, and this ranges from one to four years. The factors that affect the time you must wait are the branch of bankruptcy you used and the type of loan you want to get.
Step 3: Work on Your Credit and Income
The next thing the broker might do is pull your credit file to see where you stand. One significant benefit of using a broker is that they will help you repair your credit. They may not perform the credit repair themselves, but they will give you tips and strategies to improve your score. If you follow the broker's tips, you might see an increase in your score over the next few months.
Step 4: Apply for the Loan
Once you wait long enough after filing for bankruptcy and have a high enough score, you can apply for a mortgage loan through the broker. The broker will assist you with this and help you get approved for a loan.
Getting a loan after bankruptcy is not impossible and not as difficult as you might think. If you have questions or want to know when you will qualify for a mortgage, talk to a local mortgage broker today.
Share28 July 2020
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