MORTGAGES AFTER BANKRUPTCY: IMPOSSIBLE?

2007-03-08 10:33:40

( Financial )



You have just emerged from all sorts of money troubles. You agonize about your chances of owning a home. You fear that obtaining mortgages after bankruptcy is almost impossible.

You will be surprised to know that there are many programs available for you. Mortgage lenders are now more willing to extend loans to people who have fallen on hard times but are determined to get back on track.

However, that does not mean that you should immediately start looking for mortgages after bankruptcy. Give yourself the time to rebound and figure out where your financial woes began. Make sure that you have overcome your previous problems first. Consult a credit counselor if necessary.

It is preferred that you wait for a period of six months to two years before applying for a mortgage loan. Consider this as an opportunity to prepare. Remember, it is easier to acquire mortgages after bankruptcy if you have re-established a good credit history. Open a bank account. Get a credit card. Pay your bills on time. Save up for your down payment. If you do everything correctly, getting a loan approval should not be a worry.

In addition, you should get yourself a free copy of your credit report. Check if the information on your record is accurate. If there are any errors, contact the credit bureau right away.

Once you are ready, research on the different mortgage lenders and compare the interest rates offered. Be aware that the bankruptcy record on your credit report may not qualify you for the lowest mortgage interest rates so expect less favorable terms.

Refinancing after bankruptcy can be difficult. But if you are able to rebuild your credit standing and prove that you have learned your lessons, lenders would realize that you are a worthy risk to take.


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