Obtaining Mortgage After Bankruptcy Not Impossible

Obtaining Mortgage After Bankruptcy Not Impossible

Obtaining Mortgage After Bankruptcy Not Impossible
Bankruptcy is​ the​ process you​ have to​ go through to​ begin again .​
the​ first and important item is​ to​ rebuild you​ credit rating .​
It is​ necessary to​ know how long your bankruptcy will appear on​ your credit report .​
the​ bankruptcy will be on​ your credit report for about 10 years .​
Although this sounds bad,​ it​ only takes about eighteen months of​ on​ time payments to​ your creditors to​ re-establish your credit .​
Just remember,​ it​ is​ possible to​ get good credit ratings after a​ bankruptcy.
To help your credit ratings you​ need to​ get a​ job,​ fulltime or​ part-time,​ it​ doesn’t matter .​
Another way to​ help your credit ratings is​ to​ get various copies of​ your credit report .​
Go over them in​ great detail to​ make sure that they are correct .​
you​ need to​ get rid of​ most of​ your credit cards .​
It is​ advisable to​ have only one or​ two .​
If you​ don’t have a​ credit card,​ try to​ get one from a​ local bank or​ store .​
If you​ can’t get a​ regular card,​ try to​ get a​ secured card.
Now you​ are on​ your way to​ re-establishing your credit,​ consider these ideas to​ help you​ stay on​ top .​
Keep open communication with your creditors .​
If they are advised of​ your current status they may have helpful ideas about repaying your debt to​ them .​
Making a​ budget will help you​ effectively pay back debts .​
Another good idea is​ to​ pay off your debts that have the​ highest interest rates first .​
Re-establishing your credit rating is​ hard work but can be done .​

Most folks believe that after bankruptcy obtaining a​ mortgage for a​ new home is​ impossible .​
This is​ not necessarily the​ case as​ there are many lenders willing to​ take a​ chance on​ people once the​ bankruptcy has been discharged .​
However,​ there are few steps that need to​ be taken to​ improve the​ chances of​ a​ lender reacting favorably to​ the​ applicant’s credit history.
If the​ person filing for bankruptcy has rewritten any loans such as​ an​ auto loan to​ keep the​ vehicle out of​ bankruptcy,​ keeping up the​ payments on​ time will demonstrate an​ improvement on​ the​ potential borrower’s part about wanting to​ pay their bills on​ time .​
Additionally,​ if​ any credit cards have been opened since bankruptcy discharge,​ making sure they are kept up to​ date will also help the​ cause.
One of​ the​ main criteria lenders look at​ for home loans is​ the​ borrower’s debt to​ income ratio .​
Having recently filed for bankruptcy the​ debt should be minimal .​
Going through the​ credit report will show any debts that should no longer be listed and the​ process of​ having them removed begins with a​ written request to​ the​ agencies to​ do so .​
This process can be time consuming and often proof will have to​ be provided as​ to​ the​ validity of​ removing any items from the​ report.
Even with an​ appropriate income to​ debt ratio and a​ positive approach to​ keeping payments up to​ date may not be enough for some lenders to​ issue a​ mortgage loan .​
By waiting a​ year or​ six months following an​ initial rejection may vastly improve the​ chances of​ success.

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