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Bankruptcy

Buying a home after bankruptcy

Buying a home after bankruptcy is not impossible, but you may have to wait for two years.

In the past if you had filed for bankruptcy, you pretty much had to be used to the idea that you would not be able to purchase a home at a later time. This is due to the huge hit that your credit rating takes when you file for bankruptcy. Your low or nonexistent credit makes it very difficult to get a loan – in the few cases when you are able to get one at all. After all, having filed for bankruptcy generally means that you are a high lending risk – and that bankruptcy mark will stay on your financial records for several years.

However, that does not mean that you will be completely out of luck as far as buying a home after bankruptcy. This is due to the fact that there is more than one thing that banks will look at before they offer a mortgage loan. Your credit rating will not be very good, but if you have a lot of money to put up for your down payment and have a steady source of income, then you might be able to get a mortgage loan and be able to purchase a home.

You should also be patient, too. While there are a few other things that can help you get your mortgage and a home, usually you will still need to wait at least two years before you can get that mortgage. While that is a long period of time to wait, it is not fixed. Some lenders will allow you to get your mortgage sooner if you show that you are paying off your debts during that time, and if you are offering a large down payment on the home.

Mortgage

One thing that you should know for certain is that if you are planning on buying a home after bankruptcy, you will not be able to get the really good mortgage deals that are offered by some banks. In fact, it might even be good for you to wait longer than two years, as an improved credit rating will make it much cheaper to purchase your dream home.