| How to Buy a Home - Bankruptcy |
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| Written by Jessica Lambert |
| Sunday, 08 March 2009 02:18 |
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Is it possible to buy a home with a bankruptcy? Are you considering filing?
Is it possible to buy a home with a bankruptcy? Are you considering filing? If you are in a position where you are thinking of filing bankruptcy but want to eventually buy a house, it is possible! Although a bankruptcy will reduce your credit score by 200+ points, the damage is not ever lasting. After filing bankruptcy you will want to be diligent on achieving a perfect payment history with three or more credit references. Most of the time you will need to wait two years from the dismissal of the bankruptcy to be reviewed for a mortgage loan. It helps to get letters from people with whom you have been paying bills on time with (telephone, or other utilities, for example). You can never have too many good reports of your enhanced credit responsibility, especially after a bankruptcy. Naturally, its a good idea to keep your job, and ideally the same job from the time of your bankruptcy. Remember, you're trying to show case your consistency and reliability as much as possible. As your credit lines begin to come back, be careful not to use too much of whats available. Keeping the charges you make low will be a strong signal to lenders that you mean business. A warning I always explain to people is to make sure whatever was causing the problems that led you to consider the bankruptcy, in the beginning, have been fully fixed. Bankruptcy is a serious event. You will be closing the windows on almost any credit for a time, not to mentions the financial mark it leaves will remain on your credit report for 10 years. Recurring financial problems become harder to deal with once you have filed bankruptcy. Once you have made all the appropriate post-bankruptcy steps then you are ready to start your search, keep the following tips in mind. Be very wary of sub-prime lenders who charge excessive amounts from processing fees, pre-payment and other fees. As I often say, if it seems excessive or unfair, it probably is. Make sure you obtain 3 or more quotes from different loan officers. This will help you find the best deal. Do not give up, just get creative. If you happen to need money for a down payment, think about borrowing it from a friend or relative. After closing, sometimes you can take a second or third mortgage up to the value of the house to repay. (Disclose any creative thoughts to your loan officer) First-time-buyers. Often there are sate-operated first-time buyers programs which can help you get started. A quick internet search can work wonders. Make sure you have searched all other ideas other than bankruptcy before you take this step. Having creditors bother you can create more issues that you might normally handle without considering a major bail-out. In summary, review your credit report for mistakes and opportunities. Negotiating toward a clean financial history has helped many from filing for bankruptcy. Whatever your choice, make a move today " you will be so happy you did! DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. For a free credit consultation call 1-866-246-7311. To learn how to remove a charge off or to learn how to remove bad credit from debt collectors such as LVNV Funding. |