Most people think that it's not possible to obtain a home loan after you have applied for bankruptcy. Yes, it is a challenging process but not impossible by any means. In order to secure a mortgage after filing bankruptcy you need to; wait, make sure that your credit accounts appear as discharged in the bankruptcy on your credit reports, rebuild your credit and maintain steady work within the same field.
You may qualify for a FHA loan if you filed a Chapter 13 and have been making payments on time for twelve months. If a Chapter 7 was filed, you will need to wait at least two years after the discharge date before being eligible. Remember that the filing date is not the same as the discharge date.
It is important that the accounts included in bankruptcy appear as such on your credit report. This is better than accounts showing delinquent payments or appearing in collection or charge-off status. You can do so by filing a dispute with each of the three agencies and sending each bureau a copy of your bankruptcy documents itemizing which accounts were included with the bankruptcy. Disputes can be sent by mail, phone or fax. You will need to include your name, home address, social security number and the exact nature of your dispute. Legally, the bureaus have by law 30 days to investigate the claim once they receive your documentation and will send you a corrected file with the results.
Rebuilding your credit and obtaining positive trade lines is also very important. If you have current accounts in good standing it will be extra important to pay on time. If you do not have any accounts in good standing then you might want to open a credit cards which are secured. Make sure that the issuing bank of those secured cards report to the three agencies before you apply, otherwise it won't do your credit any good. In order to rebuild your credit, you will need to have both installment and revolving accounts which are in good standing. Revolving accounts are credit card accounts while example of installment loans are auto and student loans. Do not apply for too much credit at one time since a high number of inquiries can affect your score negatively.
Stay at the same job for a minimum of two years and don't change jobs right before you apply. This shows stability and an ability to pay. It is also vital to keep your employment within the same field or line or work. Keep all your check stubs and tax returns in a location that is easily accessible in case the lender wants to see them.
It may seem really difficult to obtain a home loan if you have filed bankruptcy but nothing is impossible. It is suggested that you utilize the waiting period (between a bankruptcy filing and mortgage application) to rebuild your credit, correct errors on your credit report and build a steady work history.
You may qualify for a FHA loan if you filed a Chapter 13 and have been making payments on time for twelve months. If a Chapter 7 was filed, you will need to wait at least two years after the discharge date before being eligible. Remember that the filing date is not the same as the discharge date.
It is important that the accounts included in bankruptcy appear as such on your credit report. This is better than accounts showing delinquent payments or appearing in collection or charge-off status. You can do so by filing a dispute with each of the three agencies and sending each bureau a copy of your bankruptcy documents itemizing which accounts were included with the bankruptcy. Disputes can be sent by mail, phone or fax. You will need to include your name, home address, social security number and the exact nature of your dispute. Legally, the bureaus have by law 30 days to investigate the claim once they receive your documentation and will send you a corrected file with the results.
Rebuilding your credit and obtaining positive trade lines is also very important. If you have current accounts in good standing it will be extra important to pay on time. If you do not have any accounts in good standing then you might want to open a credit cards which are secured. Make sure that the issuing bank of those secured cards report to the three agencies before you apply, otherwise it won't do your credit any good. In order to rebuild your credit, you will need to have both installment and revolving accounts which are in good standing. Revolving accounts are credit card accounts while example of installment loans are auto and student loans. Do not apply for too much credit at one time since a high number of inquiries can affect your score negatively.
Stay at the same job for a minimum of two years and don't change jobs right before you apply. This shows stability and an ability to pay. It is also vital to keep your employment within the same field or line or work. Keep all your check stubs and tax returns in a location that is easily accessible in case the lender wants to see them.
It may seem really difficult to obtain a home loan if you have filed bankruptcy but nothing is impossible. It is suggested that you utilize the waiting period (between a bankruptcy filing and mortgage application) to rebuild your credit, correct errors on your credit report and build a steady work history.
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