Filing for bankruptcy or home foreclosure can be a very devastating time in your life. But it doesn’t have to be a barrier between you and home ownership. No longer is it impossible to buy a home after a foreclosure or bankruptcy. Here are a few things to consider.
• It will take a while to re-establish your FICO credit score.
• You will most likely need to pay a higher interest rate to get a bankruptcy home loan.
• If you are attempting to get a mortgage loan less than 2 years since the time of discharge, you will NEED a good payment history since your bankruptcy.
• You will NEED a down payment for your new home.
Buying a home is a huge financial investment. And if you have a less than financially stable history, you will need to prove to your lender that you can be trusted. One way to do this is to improve your credit scores. So here are a few ways to help you re-build your credit:
• Do not rush into buying a home after bankruptcy.
• You may find it hard to get an unsecured credit card. In this case, consider applying for a secured credit card. This type of card uses the amount of money in your savings account to determine your credit limit.
• Installment loans: These can include personal loans, student loans and mortgage loans and will help to build your credit.
Remember, while filing for bankruptcy or home foreclosure may make it harder to buy a new home in the future, it does not mean an end to your days as a homeowner.
If you have any questions, please contact Jeremy Walsh Real Estate by calling 443-610-5722 or click here today!