Nobody wants to contemplate serious financial problems, especially having to file for bankruptcy in order to find some level of debt relief. Once you have the necessary paperwork filed and your case is closed, you then have the opportunity to start fresh and work toward rebuilding good financial health. If you have had to sell a car or house in order to satisfy your debts, you may be curious how to go about finding a new place to live. If you wish to buy a house, how can you obtain a loan to buy one given your recent credit history. A bankruptcy will stay on your record for about ten years - what if you don't want to wait that long to buy?
Can you buy a home after you have filed for bankruptcy? The short answer is yes. Now, can you get a loan to buy that home? Another short answer brings a yes, and a big "however." Remember that a bankruptcy stays on your records for a while, and it will affect your credit report. As you try to apply for credit card and finance things like furniture or other items, people will research your financial history and find out about your recent filing. This doesn't mean, though, that you will be automatically refused every time you try to buy something, but you may find it more of a challenge to get what you need as you work to rebuild good credit.
When a mortgage company considers you for a loan, they will want to know that you are good for making the payments on time. You must demonstrate that your financial troubles are behind you, and that you are willing to act responsibly as you pay off new debts.
What does this mean? You must pay all bills on time - utilities, rent where applicable, and credit cards. You should keep track of your credit report and look for changes, for better or worse. Become familiar with how credit works and you can demonstrate that you are capable of handling a home loan.
Should you receive a loan to buy a home, you may find you are put under certain restrictions. You may not get as much as another borrower would, and you may be expected to pay under a stricter schedule, or at slightly higher interest. You may wish to consult with a mortgage lender that has dealt with people in similar situations to determine if getting a home loan now is right to do, or if you should wait until you have established an improved credit standing.
However you go about it, know that you can rise above your bankruptcy and reclaim your life. Be prepared to do it well.
Can you buy a home after you have filed for bankruptcy? The short answer is yes. Now, can you get a loan to buy that home? Another short answer brings a yes, and a big "however." Remember that a bankruptcy stays on your records for a while, and it will affect your credit report. As you try to apply for credit card and finance things like furniture or other items, people will research your financial history and find out about your recent filing. This doesn't mean, though, that you will be automatically refused every time you try to buy something, but you may find it more of a challenge to get what you need as you work to rebuild good credit.
When a mortgage company considers you for a loan, they will want to know that you are good for making the payments on time. You must demonstrate that your financial troubles are behind you, and that you are willing to act responsibly as you pay off new debts.
What does this mean? You must pay all bills on time - utilities, rent where applicable, and credit cards. You should keep track of your credit report and look for changes, for better or worse. Become familiar with how credit works and you can demonstrate that you are capable of handling a home loan.
Should you receive a loan to buy a home, you may find you are put under certain restrictions. You may not get as much as another borrower would, and you may be expected to pay under a stricter schedule, or at slightly higher interest. You may wish to consult with a mortgage lender that has dealt with people in similar situations to determine if getting a home loan now is right to do, or if you should wait until you have established an improved credit standing.
However you go about it, know that you can rise above your bankruptcy and reclaim your life. Be prepared to do it well.