Buying A Home After Bankruptcy – How Long Should You Wait To
Buy?

Individuals interested in purchasing their own home strive to
maintain a positive credit rating This is achieved by paying
bills on time, having a low debt to income ratio, and so forth
Nevertheless, several lenders are eager to offer home mortgages
to individuals with bad credit These mortgages have a higher
interest rate, which increases the monthly payment Although a
mortgage may be attained with bad credit, the course of action
is slightly different for individuals who have filed bankruptcy
Two Types of Bankruptcies
There are two types of bankruptcies A chapter 7 bankruptcy
involves complete liquidation in which debts do not have to be
re-paid On the other hand, a chapter 13 bankruptcy entails
repaying a portion of the debt over a fixed period For the most
part, a bankruptcy should be the last alternative, and not a
quick fix to credit problems Many explanations cause a person
to file bankruptcy These include excess credit card and
consumer debt, high medical bills, etc Lenders determine credit
worthiness based on information provided in credit reports A
bankruptcy is a negative remark that remains on credit reports
for ten years Throughout this 10-year period, individuals who
filed bankruptcy can expect to pay higher interest rates on
automobile loans, mortgages, and credit cards
How Long Should You Wait Before Buying a Home
Obtaining a home after filing for bankruptcy is feasible;
nonetheless, individuals who have filed must adhere to specific
stipulations To obtain a mortgage after filing a chapter 7 or
chapter 13, you must wait at least two years after the
bankruptcy is discharged Moreover, individuals who have had a
bankruptcy case dismissed must also wait two years before
applying for a mortgage During this 24-month period, it is
recommended that person’s re-establish their credit history If
possible, acquire a line of credit from at least three to four
creditors Immediately following a bankruptcy, a secured credit
card, or a high interest credit card is your best option
However, once a good payment history is established with these
creditors, you may be able to obtain credit card offers with
reasonable rates

Tags | applying, bankruptcies, bankruptcy, chapter, credit, creditors, excess, medical, mortgages, result, stipulations