Life after bankruptcy and qualifiying for a home

29 Aug

Life after Bankruptcy and Qualifying for a Home.   Bankruptcy can help relieve you of your debts and stop harassing creditors from contacting you but have you thought about life after bankruptcy? Will you be able to qualify for a new home?

You can be approved for a new mortgage at a normal interest rate within 24 to 30 months after your discharge. If you can prove the bankruptcy was caused by medical reasons or a divorce you probably can be approved much sooner. But there are qualifications that you must meet to get a new mortgage and this all depends upon how you re-established yourself after the bankruptcy discharge.

Even if you don’t meet all the qualifications you can still get a mortgage but it will come with a higher interest rate and a larger down payment. Lenders will be inquiring about your finances and looking to see if you’ve paid your bills on-time since the bankruptcy.

So How Much Credit is Enough?

If mortgaging a new home, it will take more than a bank card with a $500 limit to re-establish your credit. Begin by concentrating on the necessities and time will work miracles. Start establishing the following:

1.    Bank checking and savings account
2.    A secured credit card from a reputable institution
3.    An auto loan

You will need at least 3 credit references since your bankruptcy.

Put Your Financial House in Order

It all starts with your money. Have you noticed that most people in dire financial straits seem to have everything? Large screen televisions, expensive appliances, fancy cars, etc? When you are discharged from bankruptcy you must cut expenses and stop throwing money away on useless things however the problem here lies with our mindset – we believe everything we have is a necessity; the new wardrobe, the mini-mansion, the over-priced automobile; you may very well deserve these things but if you can’t afford it you simply have to understand the obvious – You Can’t Afford It!

Did You Know –

After your bankruptcy discharge you can re-build your credit score within 24 months up to a high 800? But this requires paying all bills on time and securing new credit responsibilities to show that you’re ready.

I wish I could say that you’ll be automatically qualified but this all depends on what you’ve done since your bankruptcy and the lender’s guidelines.

Things that will Kill a Mortgage Loan Application

Start anticipating a bumpy ride; I know this sounds negative but it’s best to be prepared and after a bankruptcy it’s not a walk in the park. There are twists and turns but it will prove to be well worth the hassle so never give up.

There are things that will likely kill or just delay your chances for a new mortgage;

1.    Poor credit since bankruptcy
2.    High debt to income ratio
3.    Job instability
4.    Tax liens or levies against your paycheck
5.    Insufficient down payment

Reality hurts sometimes but when you’ve been given a second chance you should know you have to prove yourself all over again. The most important thing here is to know that you must take a hard look at how you’re living and the work you must put into re-establishing your credit. This will improve your chances not only for a mortgage but living encumbered without the benefits of good credit.

About the Author: Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida.  Millie is Vice President of Bold Real Estate Group, a boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties.  For more information please forward your request to communityinfo@comcast.net

View thousands of listings  www.Northeast-Florida-Relocation.comwww.BoldRealEstateGroup.com,  www.NewYork-Florida-RealEstate.com, www.PGAVillage-Homes.com, www.TheCascadesAtStLucieWest.com, www.HealthcareRelocationServices.com

Home | Homes For Sale | Homes Short Sale | Search Foreclosures | Open House | Homes For Rent | Renter’s Insurance | Cascades Resources | Cascades Events | Community Tour | Home Virtual Tour | Driving Directions | Cascades Q & A | Cascades Floorplans | Cascades HOA | Community News | Community Providers | Cascades BLOG | Sign-up for a Tour! | Buyer’s Resources | Dream Home Finder | Search MLS | Home Inspection | Home Warranty | Florida Relocation | Property Taxes | Tax Estimator | Insurance Quote | Buy A Short Sale | Seller’s Resource | Market Analysis | Short Sale Inquiry | Our Commitment | Outbound Relocation | Sold Homes Report | Jobs Opportunity | Senior Care Living | Workforce50.com | Retired Brains | Tradition | The Vineyards | Kings Isle 55 Plus | Magnolia Lakes | Sawgrass Lakes | Lake Forest | Lake Charles | Tesoro Homes | The Club SLW | Belmont SLW | Country Club Estates | Lakes At SLW | Viscaya Falls | PGA Village | Verano PGA | Seasons 55 Plus | Tampa Homes | Ocala Homes | Naples Homes | Fort Myers Homes | Jacksonville Homes | Ponte Vedra Homes | Orlando Homes | New Developments | Discovery Tours | Costa Rica Homes | Real Estate Glossary | Golf Course Finder | FREE Moving Quote | Market eNewsletter | Currency Converter | FREE Credit Score | Airport & Flights | About St. Lucie West | Connect Utilities | Global News | Books WebStore | Retirement Homes By State | Local Hospitals | Dining Guide | St. Lucie County Profile | New Developments | Cost of Living Data | Taxes by State | For Buyers | For Sellers | Homeowners | Mortgage Calculator | Mortgage Rates | Loan Quote | Get Pre-Approved | Mortgage Articles | Lending Sources | St. Lucie County | Martin County | Palm Beach County | Indian River | Broward County | Brevard County | Okeechobee County | Miami-Dade County | Referral Network | Real Estate Career | Real Estate School | Guest Bloggers | Contact Us | Testimonials | About Us | Our Blog | About Florida | Se Habla Español | Why Use A REALTOR® | North Florida Homes | Privacy Policy | Florida New Developments

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: