It is not impossible to buy a home after a Chaper 7 bankruptcy. Although you may be able to buy immediately, you may get better mortgage terms and a lower down payment requirement if you wait two years.
It is not impossible to buy a home after a Chaper 7 bankruptcy. Although you may be able to buy immediately, in most cases, you have to wait two years to get a mortgage.
After filing for Chapter 7 and having your debts discharged, you may not be eligible for a mortgage for two years. During this period, you can rent a place to live as you rebuild your credit. The first thing to do is to live within your means. It's also important to pay all your bills on time. By getting a secured credit card and making regular payments, you can also improve your credit score.
Ready to look at homes now? Click here for free property listings.
After two years, you can begin the home-buying process. To buy a home, it's a good idea to work with a real estate agent or and mortgage broker who understand your situation. These professionals may know lenders willing to give you a loan despite the bankruptcy on your credit reports. With a loan broker helping you, you can locate a reputable lender who has reasonable interest rates. Once you find a lender to work with, it's important to get pre-approved for a mortgage. This pre-approval lets you know how much money you can borrow and what your estimated payments will be.
Loan brokers can also help you buy a home after Chapter 7 bankruptcy if you don't want to wait for two years. Beware of scams that aim to take advantage of you because you had a bankruptcy. A good loan broker will find you legitimate lenders. In most cases, the lenders who are willing to give you a mortgage will require a down payment of around 25 percent or more. These lenders also charge much higher interest rates than you would get from a bank. You will get better loan terms if you wait for the two years to expire.
To buy a home after Chapter 7 bankruptcy, you may need patience and money for a down payment. Yet, you can find lenders to help you despite your previous financial problems. For real estate listings in your area, go to Reply! now.