How To Buy A House After Filing Bankruptcy
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Filing bankruptcy doesn't necessarily mean that you can't ever own your own home. It will be a difficult process but not an impossible one. The main steps to securing a mortgage after filing bankruptcy are; waiting, making sure that your credit accounts appear as discharged in the bankruptcy on your credit file, rebuilding your credit and maintaining steady employment.
If you filed a Chapter 13 bankruptcy you may qualify for a FHA Loan if you have been making timely payments for over a year. If you filed a Chapter 7 you will need to wait at least two years after the discharge date before applying. Keep in mind that the bankruptcy filing date is different than 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.
Re-establish your credit rating is also important. If you have current accounts in good standing it will be imperative to make the timely payments. If you do not have any accounts in good standing then you might want to open a few secured credit cards. Check to make sure that the issuing bank of those secured cards report to the 3 bureaus before you apply, or else it won't have an effect on your credit. 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 car and student loans. Do not apply for too much credit at once since too many inquiries bring your score down.
Lenders will want to see you at the same job for at least two years. 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 on file since you will need to provide this information when applying with a lender.
Obtaining a home loan after bankruptcy may seem like an impossible task but with time and planning, anything is possible. You may want to use the waiting period (between a bankruptcy filing and mortgage application) to re-establish your credit, dispute and correct discrepancies on your credit report and maintain steady employment. With a bit of planning and organization, it is possible to obtain your very own home even after a bankruptcy filing.
Article Source: Articlelogy.com
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