June 18, 2024


Mad about real estate

How to Get a Mortgage After Filing for Bankruptcy?

Mortgage is a loan taken by a borrower in the security of the properties having assets of same value such as home, land etc. Being punctual in paying off the loan at regular interval is very important. For bankrupt people, it is even more difficult to pay the loan on time. Therefore, banks generally do not prefer bankrupt people for mortgage.

However, getting a mortgage after bankruptcy is not as difficult as you think. Many lenders are ready to give mortgage to the people who have either bad credit or have gone bankrupt. You have to be well aware of how to get mortgage after filing for bankruptcy. Depending on your circumstances, you may get a mortgage soon. But, it is not advisable to apply for loan for at least 18 months after filing for bankruptcy.

First step for getting mortgage after bankruptcy.

Getting a mortgage after bankruptcy depends on various other aspects that are taken into account during your application for mortgage. Getting mortgage depends on the amount of money you can deposit and your guaranteed income. In short, success will depend on your ability to provide both of these things.

Some tips to get mortgage after bankruptcy.

  • Many mortgage companies are not ready to give mortgage to a bankrupt person for at least two years since bankruptcy discharge. As the initial procedure, you have to manage all your debts correctly from the time of bankruptcy discharge is declared. You should pay off loans for your home or car that were not discharged in bankruptcy.
  • The chance of getting mortgage after bankruptcy depends upon your deposit on the house. The more you can put down on the house as a deposit, the more chance you have to get a mortgage. A 3-5{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} deposit is enough to help you to get the loan.
  • If you want a mortgage after bankruptcy, try to limit the amount of further debts like bank loans and credit cards. The mortgage lenders always check your debt-to-income ratio and so it is advisable to reduce further debts as much as possible.
  • The information on your credit report may not be correct always and should be checked for accuracy. Remember, that any wrong information on your credit report reduces the chance of getting mortgage. You can request for the copy of a credit report through credit reporting agencies or credit monitoring companies and report if any mistake is found. It helps you to establish a favorable debt-to-income ratio.

Lenders, brokers and introducers are the main three organizers that help you to get a mortgage after bankruptcy. Brokers are specialized in getting mortgage after bankruptcy. They have access to many lenders and so they can help you to choose the best mortgage that suits to your circumstances. The also assist you with advice in the application process. Introducers also do a similar job as brokers. But, they do not advice the borrowers. Introducers recognize that you need a mortgage now and introduce you to a lender or broker. But, in some cases, it is better to apply for a mortgage directly to a lender.

If you really want a mortgage during bankruptcy, do not get upset. You can do some good work on repairing your credit rating in the mean time.