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Home Purchase After Bankruptcy

Filing a bankruptcy is considered a dark time in a person's life. Discharging your debts and getting a fresh start is an uphill climb. Sometimes you might wonder if you could be able to buy a property or home after you declare bankruptcy.

The good new is-yes! It is no longer impossible to buy a home after bankruptcy. These days, mortgage companies and many online lenders are now offering home loans for those who have a bankruptcy report on their credit. Even some lenders will approve your loan one day after the discharge.

There are several reasons why a person chooses to file bankruptcy. First, the loss of work, unexpected high medical bills, and plenty of credit card debts. The mortgage lending industry has established special loan terms and packages for those who filed for bankruptcy in the past. With your home as collateral to a loan, the lender is more confident in approving your loan, as soon as you are discharged of the bankruptcy.

You can get a good interest rate and affordable payments from both online and traditional lenders. The interest rates are currently lower than they were before. Do not allow a past bankruptcy prevent you from owning the house of your dreams. After 18 to 24 months after the debts have been discharged, you can qualify for a home loan. Your bankruptcy history is not as important to a loan officer as your capacity to make a down payment and your income stability. What can make or break your ability to buy a home after bankruptcy is really based on the debt to income ratio.

Here are some ways to buy a property after bankruptcy:

1. Secure a copy of your credit report. It has been found that almost eighty-percent of credit reports have errors strong enough to reject your ability to get a home loan approval.

2. Have those derogatory items removed from your credit report by contacting a company that can assist you in this matter. Be wary of frauds that offer you credit recovery assistance.

3. Continue paying your bills promptly. This will show creditors that you are trying to create a solid payment history.

4. Document your rental history. Show proof of your on time payments and the corresponding amounts. This helps to decide your mortgage amount.

5. Try to apply for a secured credit card. This allows you to deposit a certain amount into it and allows you to borrow against it for a positive payment history.

6. Provide further proof of positive payment history, such as your cell phone and car payments.

7. Keep your debts low and resist large purchases such as cars.

By following these easy guidelines, you can achieve your goal of purchasing the house you dreamed of for your and your family. Follow these diligently and you will be cheerful enough when you start making your monthly mortgage dues. Remember, not all is lost in a bankruptcy; the important thing is your will and determination to get back on the right trail and move forward.

By:Sonia Llesol

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