Mortgage After Bankruptcy

Once in a while, people get in over their heads when it comes to credit and debt. If you have gone through a bankruptcy, you may feel that your credit is shot and so is your future. However it is possible to get a mortgage after bankruptcy.

Qualifying after a bankruptcy for a mortgage or a refinance can be difficult. Plus, many bankruptcy attorneys will not give you information on mortgage refinance after bankruptcy or how to rebuild your credit. If you are considering after bankruptcy mortgage refinancing, here are some tips to get you started.

Before applying for mortgage financing after a bankruptcy, you should get a copy of your credit report. Most times, the credit accounts that were forgiven by the bankruptcy will not be removed right away from your credit report. Any items that should have been removed but have not been you will want to get discharged before applying for after bankruptcy mortgages.

Before you start applying for home mortgages after bankruptcy, you need to start over. A bankruptcy wipes your slate clean, so you have the opportunity to start over. Pay your bills on time and in full, and speak with the creditor if you are having payment difficulties before the bill is due to find out about payment plans or other alternatives.

When you apply for a mortgage after a bankruptcy discharge, it is helpful to have a strong rental history. Your rent is usually the biggest payment you will make each month, and being able to prove that you are paying that faithfully will help you to get mortgage refinancing after a bankruptcy. Pay your rent with a check, not cash or money order since that will give you a documented history.

Before you apply for a mortgage after your bankruptcy, apply for a secured credit card. Use it to create a new, positive credit history. You may eventually qualify for more credit and a return of your deposit.

Another way to get a FHA mortgage after bankruptcy is to provide nontraditional references. These can be a year’s worth of statements from cell phones, car insurance, or other items that can prove a positive payment history to the lender you are getting a mortgage after bankruptcy loan from.

One falsehood you might hear about a home mortgage after a bankruptcy is that buying a car will help you. Instead, this can hurt you by making your debt ratios higher, making it even harder for you to qualify for a mortgage after bankruptcy and foreclosure.

The most important thing about mortgages after bankruptcy is not to get in over your head again. Make sure that you consider your financial situation carefully before applying.