Most of us have experienced financial difficulties, some of us more so than others period perhaps your financial past was so difficult that you have had to declare bankruptcy at some point period when that happens, you were probably told that no mortgage lender would touch you for years to come. This seems unfair because you declare yourself bankrupt because you needed a fresh start, not because you need it even more difficulties.
Can You Find a Mortgage Lender after Bankruptcy?
You will be happy to know that declaring yourself bankrupt doesn’t mean that you will only ever be able to rent again. In fact, there are plenty of lenders, particularly in Florida, who work with people who have had bankruptcies in the past, even if these were very recent. That said, it is likely that you will have had your bankruptcy discharged for at least two years before you will be accepted for a mortgage. But once you reach that two year period, you should be able to find a home even if you haven’t yet saved up for a down payment.
Before you start looking for a lender, make sure that you consistently pay all your debt on time and that your credit report provides an accurate reflection of what your situation is today. You also consider what your budget is so that you can determine how big of a mortgage you can afford. You should never pay more than 36% of your monthly earnings on your mortgage payments, home incidentals, and insurance costs. Once you get to the stage that you are contacting lenders to prequalify, be open and honest about your past. This will ensure that your lender will only look at those products that are suitable for someone with your particular credit history. Make sure that you posted quite clearly about how committed you have been since your bankruptcy to maintaining a clean credit file.
You’re Linda should be able to point you in the direction of loan programs that are designed specifically for people who have had bankruptcies in the recent past. An example is the fha loan, who seem to be particularly keen on people who have had financial difficulties. There are exceptions to these loans and your lender will be aware of what these exceptions are in your geographical area. Remember, more than anything, that there is light at the end of the bankruptcy tunnel. Well it will certainly be slightly more difficult for you to find financing, it is also not impossible.
A bankruptcy does not mean that you will be punished for the rest of your life. With a little bit of time and patience you will be able to once again get on the property ladder and find your dream home. Yes, this may take a little bit of time and effort but it is worth it. Remember, financial difficulties in the past are not a reflection of who you are as a person, they simply mean that life happens and that you have found your own way of dealing with that.
