Getting a Mortgage After Bankruptcy
In the past, when you say Bankruptcy or foreclosure, there is a negative stigma; like you have an incurable disease or that you are already heading for the dumps. However, that is not the case anymore especially since the number of options in getting a mortgage after bankruptcy is already expanding. With the help from the national economy and the increasing number of programs offered by numerous private lending companies, getting this kind of mortgage has become a reality and the stigma now becomes trivial. While bankruptcy and foreclosures will linger in your credit report for a decade, that does not mean it will not go away. Like anything else, this too, shall pass and that is the attitude that any person should have if you are serious about getting this kind of mortgage.
Getting a mortgage after bankruptcy can be easier if you take the time to review your credit reports. Do this right after the bankruptcy discharge so that you know that all details are accurate and that all your debts have been cancelled already. There are some creditors that might continue reporting collections and open accounts as a default so polish those up to prevent the erosion of your credit in getting this kind of mortgage.
You should review all deeds, records and other papers relating to your bankruptcy if you wish on getting a mortgage after bankruptcy. Lenders usually count 3 years after filing for bankruptcy before they can accommodate you to borrow money for a new house.
If you have any loans, you need to continue paying them, and pay them on time. This is a perfect way to add some points on your credit score and make your report more appealing.
You need to focus on improving your credit and a good way to do that is by getting a secured credit card. Only get a major card and only focus on one. This will prevent you from generating risks that you are planning on making credit again.
You need to explore all mortgage options. Will private companies hear your plea of getting this kind of mortgage? You should try FHA and VA loans if you qualify. You can also take advantage of Piggyback mortgage plans if you have kept your credit history in good shape after 3 to 4 years of waiting.
In certain cases, getting a mortgage after bankruptcy might not be a bad idea after all. By clearing you away of your blemished indebted past, you have given new life to your credit and you are now more aware of the risks involved if you do not manage your finances well. While we all hope that we do not get bankrupt, just remember that getting this kind of mortgage is possible. Let us help you find the best mortgage if that ever happens. Choose a loan type then pick your state as well as your credit profile to receive rates. Compare these rates and find the best lender.