Mortgage Loans: Loan After Bankruptcy

Mortgage Loans: Loan After Bankruptcy
by Mary Wise

Filing for bankruptcy can be a very stressful process. Not only does it mean that you are up to your neck deep in debt, but also that you have no means of repaying it, at least any time soon. After the bankruptcy is discharged, you will be debt free, but it will have left a huge stain on your credit report that will stay there for at least 10 years. It does not sound good, now does it?

The main concern people have after going through bankruptcy is whether they will be able to get finance in the near future or not. This is not an easy question at all, as some other things have to be taken into consideration, such as monthly income, possession of assets to pledge as security, etc. As a general rule, it will be hard to obtain finance after bankruptcy, but it is completely feasible. There are no reasons to believe you will not be eligible for a loan.

When It Comes To Mortgage Loans

You are thinking of buying a property, a home of your own. It does sound wonderful, you cannot wait to be able to see your kids running around the spacious back yard after a succulent barbecue. But there is only one issue... your bankruptcy file has just been discharged. As unlikely as this will appear, you will still be able to obtain the finance you need provided that you meet some requirements.

Mortgage Loan After Bankruptcy Requirements For Approval

This is no exact science, some lender might or might not follow the same rules. I will mention here the most common qualification requirements for anyone who is thinking of applying for a mortgage loan after going through bankruptcy.

• 1. A couple of years of good credit history
  

This is not a must, but some lenders might feel more reassured and more willing to finance your dream if they see that after filing, you began making timely payments on all your bills. This will certainly prove that you have left behind the rough patch that led to you filing for bankruptcy and are ready for a new and fresh start.

• 2. A steady job and salary
  

This is definitely the most important of requirements and the only one which is also a must. The other ones might be negotiable, but not this one. It shows the lender that you have high repayment capabilities, which is essential as this is a high-risk lending procedure.

• 3. Down Payment
  

Most lenders, if not all, require a down payment, at least a small one. Not many lenders are willing to provide 100% finance on a property, but if you are lucky you might be able to find one who will. It is a matter of thorough research and tons of patience, but if your dream house is your ultimate goal, I am sure you are going to do everything in your power to get a good deal on the mortgage loan.

It is not impossible to get a mortgage loan after going through bankruptcy, you just need to let some healing time go by, one year in the least. I hope you all the best, and may you find the right lender and the perfect home loan.