Share:

While declaring bankruptcy is an effective way to gain control over overwhelming debt, it will take a while for your credit standing to recover. In turn, obtaining a mortgage can be challenging once you’ve filed. However, it’s not impossible. With proper financial planning and guidance from an experienced bankruptcy lawyer, your chances of getting approved for a home loan will increase. Here are a few steps to securing the funds you need to become a homeowner.

How to Qualify for a Mortgage After Bankruptcy 

Check Your Credit Report 

Before attempting to apply for a mortgage, your bankruptcy case must be completed. Then, upon receiving notice from your bankruptcy lawyer that all debts have been discharged, it’s essential to carefully review your credit report. Make sure there aren’t any discrepancies in the report that can further impact your ability to get a loan. If any mistakes are evident, it should be disputed with the credit rating agencies right away. 

Start Rebuilding Your Credit 

bankruptcy lawyerNext, you must start rebuilding your credit. Typically, the quickest way to show a mortgage lender you can be trusted to pay them back is to open secured credit cards and installment loans. The key to keeping new credit accounts in good standing is to make monthly payments on time and avoid carrying a balance if possible. It’s also best to only use a small amount of your credit and to maintain the same job for a significant length of time.  

Go Through the Waiting Period 

Additionally, you will be required to go through a waiting period before you can apply for a mortgage post-bankruptcy. How long you have to wait will depend on the type of loan. Generally, the waiting period is set at two years for a Fannie Mae loan, whereas it may only be one year for an FHA loan if your bankruptcy was the result of a job loss but you’ve since found steady employment. You should also make sure to wait long enough to lock in a good interest rate.

 

If you need further advice from a reputable bankruptcy lawyer on repairing your credit after filing bankruptcy, contact Brian Kawamoto Attorney. With more than 25 years of experience, he has helped numerous Aiea, HI, residents successfully achieve debt relief. He will explore your options and determine which chapter is most suitable for your specific situation. Call (808) 486-6107 to consult with a knowledgeable bankruptcy lawyer or visit his website to submit an inquiry online.

tracking