We know that bankruptcy can impact life in a variety of ways including divorce and adoption. But did you know it can also impact the home buying process? While this may instill fear in some, this is not bleak. By planning for the future, you can be ready for any phase of life.
Can I buy a home after filing for bankruptcy?
Filing for Chapter 7 and Chapter 13 does impact your credit score for some time. Because of this, many families hoping to purchase a home fear that their previous bankruptcy filing will hinder their ability to do so. But that doesn’t have to be the case.
It is possible to buy a home after bankruptcy, but you’ll need to follow some strict financial planning. Raising your credit score doesn’t happen in a day, but as you make your monthly payments, utilize secured forms of credit, and make sure you are paying the full amount each month, you’ll be surprised how quickly your score will increase.
But what’s the first step?
If you have just filed for bankruptcy, you’ll need to be issued the bankruptcy discharge before you can apply for a mortgage loan. Though it isn’t the green light to buy a home, it will give you a better chance to get through to bank lenders.
Bankruptcy will remain on your credit history for 10 years, but you don’t have to wait that long to buy a home.
Build Trust with Mortgage Lenders: Buying a Home After Bankruptcy
You don’t have to wait years and years to buy a home. There are ways you can boost your credit score and prove you can be trusted to make payments to bank lenders.
Some things you can do to boost your credit score and get started on a fresh financial start and get to the keys to your new home include:
- Pay bills on time and in full.
- Utilize secured credit cards and installment loans.
- Give it time and don’t jump in prematurely because lenders may give you a steeper interest rate.
- Do your research on loans that work best for you.
Rebuilding your credit and securing a mortgage won’t happen overnight. But filing for bankruptcy won’t stop you from buying a home in the future. Know your options and seek legal advice from the Ohio bankruptcy attorney, Michael Ryan Jones.
Buying a Home After Bankruptcy with The Jones Law Firm
Just because you filed for bankruptcy doesn’t mean you have to put your entire life on pause. With the right planning and a determined mindset, you can have the keys to your new home in no time.
If you have questions about your bankruptcy filing and your ability to secure a mortgage loan, contact the bankruptcy attorney Michael Ryan Jones today.