Life happens. Many individuals find themselves having to file for bankruptcy due to unexpected medical bills, job loss and much more. Even though you filed for bankruptcy, that doesn't mean you won't be able to get the mortgage you want at some point down the line. To help make sure you have what you need to get a mortgage, here are three things you will need to get the approval you want.
No late payments.
One of the biggest things lenders want to see is that you are making payments on time. If you have a bunch of late payments after a Chapter 7 bankruptcy, lenders are going to wonder what is going on. They expect to see that you turned things around. If you do have any late payments right now, work on making the next 12 payments on time. By showing lenders a year of solid payments, you can save yourself a lot of stress and worry about getting turned down because of late payments. You need a couple of credit accounts that show a year of positive payment history. If you need to open a secondary account to do so, now is the time to start looking at different options.
A minimum of two-years' time.
After filing for bankruptcy, the lenders are going to make you wait two years from the date of discharge before you are eligible to get a mortgage. There are some lenders that will approve you if your bankruptcy was the result of extenuating circumstances, such as something major like an illness or something that was beyond your control. Ask the lender what qualifies under this particular stipulation. All lenders are going to vary, so you need to know from one to the next what their requirements are.
A decent credit score.
Many lenders have a minimum credit score that you need to have before they will approve your application. While some might want a 600, others might approve you with only a 550 credit score. It all depends on what lending company you are trying to go through. Spend some time looking at the different options available to you based on your particular situation. Your credit score is going to go up with every payment you make on time, so do whatever it takes to get those payments in.
Now that you know the information above, you can work on improving your chances of getting a mortgage in your near future.Share
26 February 2016
When you start shopping for a loan, you might zero-in on the interest rate without a lot of thought regarding the other loan terms. However, there is a little more to look for than a decent lender and a half-reasonable interest rate. Loan terms differ significantly from institution to institution, which means that the deal you get from one place might not be as good as the deal you get from another lender. On my blog, I take the time to discuss different types of loans in great detail, so that you know what you are getting into and feel confident deciding for yourself.