Tips to Get a Mortgage after Having Been Declared Bankrupt

Time and time again, we are told that a bankruptcy ruling is the end of your financial future. However, the reality is also that solutions are in place should you have been declared bankrupt. There are lenders who will be willing to provide you with a mortgage, simply because they need to make money themselves and they can earn a lot more from people classed as “high risk” because they can charge higher interest rates. This is also why it is incredibly important that you deal with an experienced advisor like Steve Buzzi, so that you don’t get hit with a poor deal. If you can demonstrate that you have learned from your mistakes, then there are solutions out there for you.

How to Get a Mortgage After Bankruptcy

If you have filed for bankruptcy, you have to make sure that, from that point onwards, you pay all your bills as and when they are due, and that you no longer take on any kind of debt. This doesn’t necessarily show on your credit report, but at least it won’t make it worse either. Furthermore, you can show your lender proof of paying your bills. You shouldn’t take out any further credit, because even running a search against you will show up as a negative mark on your report.

Make sure that, before you even apply for a mortgage, you have copies of your credit report, obtainable through Equifax, Experian, and TransUnion. You need to know what you are dealing with, and you can also take steps to improve your rating in the meantime. Plus, if there are any inaccuracies on there, you have to have them removed.

One of the key determinations of how difficult it will be for you to obtain another mortgage is whether you filed for Chapter 7 or Chapter 13. The Chapter 7 is a more serious form of bankruptcy, under which some debt can be discharged. This doesn’t look good, because it means you weren’t able to pay what you owed. Under Chapter 13, however, you either have paid off all your debt, or you are in the process of doing so. This makes obtaining a mortgage later on a lot easier.

Before you search for a new mortgage, you should try to accumulate two years of good payment records. Indeed, people like Stephen R Buzzi probably won’t even run an application for you if your bankruptcy ruling was less than two years ago. Once that period of time has passed, however, there are plenty of things that you can do. The internet is a fantastic resource for tips and tricks to make yourself more successful in your application. Furthermore, speaking to people like Stephen Buzzi can give you a better idea of what will be expected of you, enabling you to prepare yourself.

Naturally, you should avoid bankruptcy at all costs if you can. However, should you find yourself unable to avoid it, it doesn’t mean that it is the end of the world either.