Obtaining a mortgage after bankruptcy is quiet easier than most people think. Many don’t realize that there are plausible solutions available for it, so remember; it is not completely impossible for obtaining a mortgage after bankruptcy. There are some aspects which are taken into account during the mortgage application process and this will scrutinize your guaranteed income and the amount of money you have as a deposit. Success of the application process depends on the ability to provide this information correctly.
It is a known fact that many lenders will not lend to you for a period of at least two years from the time of the bankruptcy discharge. After the initial two years, obtaining a mortgage will be much easier. To ensure the correct flow of things, you have to manage all your debts from the time of your bankruptcy discharge. Make sure you have a near- to perfect repayment history since the bankruptcy discharge. This means that you must make sure that the debts on your other assets are repaid; those which were not discharged in the bankruptcy.
The chance of getting a mortgage after bankruptcy can be further speeded- up by showing the amount of deposit which you have on your home. An amount as little as 3-5% deposit would be enough to get your application approved.
Limit the Debts:
You should limit your amount of debts and avoid certain thing such as credit card or bank loans, to create a more credible profile and have greater chances of obtaining a mortgage after bankruptcy. Limit your debts as much as possible, to build a credible debt-to-income ratio, so as to clear the evaluation by the mortgage providers.
Credit Report Check:
Many presume that the information on their credit report is automatically correct. It may contain errors and it should be checked for its accuracy. Requesting for a free copy of your credit report through a credit monitoring agency and credit rating agencies, can help you get a clear picture of your credit rating.
Every inaccurate piece of information on your credit report can work against you. Make sure you report any errors in your credit report to the concerned agency, as quickly as possible. This helps speed up the correction within the report and will also help you achieve a favorable debt-income ratio.
Pre approval Process:
This is the best way to determine if you can obtain a mortgage after bankruptcy. It is called a pre- approval process which is fast and simple; with no obligation and no cost involved. After this process, you will know your exact position on your mortgage after bankruptcy.