Tips To Help You Get A Home Loan After Bankruptcy

About Me
Finding A Better Loan

Do you remember the last time you ran out of money? If you are like most people, you might find yourself scraping the bottom of the barrel looking for extra cash more often than not. I realized that I needed some extra money a few months ago when we were building a house and our daughter was hurt, so I started talking with different loan and financing professionals to see what my options were. After I sorted out what I needed, the experts really helped me to find a loan that worked with my lifestyle. Check out this blog for great information on loans.


Tips To Help You Get A Home Loan After Bankruptcy

3 May 2018
 Categories: , Blog

There are times when the only way to get out of debt is through bankruptcy, and there is nothing wrong with using this option if you cannot find another way out of debt. The downside is that you will have to wait a while after filing before you will be able to get a loan to buy a house. If you filed several years ago, here are the best things you can do to qualify for a home loan.

Find out the waiting periods

The first thing you should know is that you must wait a certain amount of time before you even apply for a loan, and this time span is at least two years. With the different types of loan packages available, there are different waiting periods, but two years is a definite amount of time you must wait. There are other loan types that may require waiting longer than this, and you should know that the wait time starts on the date the court discharged your bankruptcy estate. Additionally, the wait time will be longer if you went through a foreclosure with a bankruptcy.

Know what lenders are looking for

Secondly, it's important to know what lenders are looking for in a loan applicant after he or she filed for bankruptcy. One of the main things lenders look for is zero defaults after bankruptcy. In other words, it will not look favorably to a lender if you have missed payments on your credit report that occurred after your bankruptcy.

Lenders also look to see if borrowers are now using their credit lines wisely after filing for bankruptcy. When they examine your credit report, they will look closely at the types of credit lines you have and the balances you owe. They will look favorably on your credit if you are using only a small ratio of your available credit.

Work on your credit

Finally, you should do things with your credit that will rebuild it, such as taking out a personal loan and repaying on schedule. You could also take out a small car loan and make all the payments on it. By doing these two things, you are showing and rebuilding positive payment history, and this will improve your credit score.

If you have done these things and have a good credit score, you should talk to a lender to find out if you now qualify for a home loan.