Filing for bankruptcy is not the end of the world. Rather, it is the spark of a new beginning where you can rewrite your financial goals, erase large amounts of your debt and start afresh. It should be understood, however, that bankruptcy filing is a serious matter, and in order to take advantage of the fresh start afforded to those who file for bankruptcy, some changes must be implemented in the way you spend and save your money. Bankruptcy filing can decrease your credit score, but you can bounce back stronger than ever with the proper planning. It is even possible to get a new mortgage.
How to Acquire a Mortgage After Bankruptcy
Having a Chapter 7 or Chapter 13 bankruptcy on your credit report will certainly slow down plans to get a new home, but it doesn’t prevent you from getting the home of your dreams. Follow these simple tips, and you may find yourself in a new home with a new mortgage sooner than you think:
- Wait until your bankruptcy is discharged. Getting a mortgage is borderline impossible during the bankruptcy. No lender is going to entertain the idea of lending to you while you are knee-deep in the bankruptcy process. Wait until your bankruptcy is discharged before seeking out lenders.
- Organize and rebuild your credit. Once your bankruptcy is fully discharged, get your hands on your credit report. You are going to want to closely scrutinize your report to see your financial pitfalls and where you need to improve. After this, take steps to rebuild your credit. Great ways to build up credit are the utilization of secured credit cards, installment loans and continuing to make on-time payments in whatever installments you have.
- Be patient. You will want to wait at least two years before applying for a mortgage so you can get the best possible interest rate on your mortgage. The further removed from the bankruptcy you are, the better the chances are that you will receive a more favorable rate.
If you have filed for bankruptcy in the past or are currently going through the bankruptcy filing process and you are worried about the possibilities available to you for acquiring a mortgage, call Morgan & Morgan today. We specialize in all aspects of the bankruptcy filing process from start to finish. Give us a call today for a free consultation with a highly skilled bankruptcy attorney.
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