Mortgage Loan After Bankruptcy

Getting a mortgage loan after bankruptcy is, contrary to popular opinion, very much possible. Declaring bankruptcy can devastate your credit rating, but it’s not the end of the world in regards to getting a new mortgage in the future, or perusing credit loans from lending institutions. 

Now, purchasing a house after a recent bankruptcy discharge is possible. There are a few things you need to understand however. First is that you should not apply for another mortgage loan for a minimum of two years. Now, while there is no “law” about this, your chances of getting mortgages less than two years after a bankruptcy filing is pretty slim. This is because lenders want to see an established track record after the bankruptcy. It’s hard for them to gauge whether you will be a good risk for them until after two years have past.

However, should you wish to obtain a mortgage sooner than two years, there are some things you can do to get a mortgage faster. In general, lenders may be willing to give you a mortgage for a home if you are willing to get a secured home loan by putting down some property or collateral. Hence, if you decided to default on the property, the lender gets to keep the actual property.

Here are some general tips for getting a mortgage loan after bankruptcy.

Report Credit Report Errors

Credit reports often have inaccuracies or errors in them. The first thing you can to ensure you get a mortgage loan after bankruptcy is to get your credit report from the 3 major credit agencies and look over to make sure there are no errors. If there are errors, you need to report it to the reporting agency to be investigated and fixed. This will quickly improve your credit score a bit. You also need to make sure the “bankruptcy” is noted on all the credit reports, especially if you declared Chapter 13 bankruptcy for credit protection. If not, contact the credit agency immediately; you may need to submit your bankruptcy documentation to the agency.

Establish New Lines of Credit

The first thing you should try to do is to get access to new lines of credit. This is not an option, it’s an absolute necessity, and should you wish to get a mortgage after bankruptcy. You can only rebuild your credit history if you have access to credit. The best way to accomplish this is to apply for a credit card.

Now, you may find you initially have some trouble with this, since getting a credit card with bad credit can be difficult to say the least. You can look online to seek out and apply for a credit card for people with poor credit history. These are offered by lenders who give credit cards to people with bad credit. You can expect very high interest rates on these types of cards. If you are interested, you can look online and visit the various bad credit credit card websites that offer this type of card application.

You can also apply for a credit card after bankruptcy from a bank or credit union. You may gain approval for a credit card, but there will be some serious limitations, like a low borrowing limit, increased interest rates, and extra fees if you miss payments.

If all else fails, you can get a secured credit card after bankruptcy by applying online or making an application from a bank. You will have to put down a deposit and the deposit will be the borrow limit of the card. You then treat the card as a regular credit card, paying off what you use each month. With proper payments, your deposit will eventually be returned to you and a regular credit card will be given to you.

It’s important to note that all of these credit cards after bankruptcy may not be the best solutions, but you are going to have to live with them. They are a means to getting your credit history repaired. With a year or two of property, responsible usage of these credit cards, you should be able to have good credit once again.

You should seek out and look at the various websites dealing with credit cards. The more you understand about what’s available, the better informed you will be and the better decisions you will make.

Monitor Credit Reports

As you begin to reestablish your credit history, you need to make sure your credit reports are always in good shape. You can get credit reports online and you can also sign up for credit report monitoring services. These are services that will email you when any chance occurs on your credit report. This can help you track any unusual account activity and prevent any sort of fraud. You will also have an eagle’s eye on your credit report and can constantly track it for any errors or inconsistencies – helping to keep your credit score at the best level.

Have a Down Payment

You can ensure you get mortgage loans after bankruptcy by putting a down payment on the house. A down payment is usually 3-5% of the purchase value. Indeed, if you do have a down payment, you may be able to get a mortgage before the two year period with a down payment, though you probably won’t be able to secure 100% of the financing. If you wait 24 months and have steadily been improving your credit and you have a down payment, you stand a very good chance at getting a home with no money down, 100% financing.

Getting a mortgage loan after bankruptcy is definitely possible. They key thing is that you must have absolutely squeaky clean credit. There are many mortgage loans for people with bad credit, but if you are looking for mortgage loans after bankruptcy, your credit history will be even more important. A single missed or late payment on your credit report – if you have declared bankruptcy – will disqualify you for a mortgage loan. So make a concerted effort to ensure your credit is in top notch. You should make a point to look online for mortgage loan after bankruptcy guides to get as much information as possible.

Some related hubs that may help:

• Student Loans for Students with Bad Credit
• Loans for Students with Bad Credit
• Student Loans for People with No Credit
• Private Student Loans with No Cosigner