07 Dec Buying a House After Bankruptcy
Going through bankruptcy can often be one of the most daunting events to experience and in most cases it’s unavoidable. Whether you’ve been declared bankrupt through a court order or by your own choice, you’ll be happy to hear that this doesn’t mean the end of the road for your financial stability. You’ll have to start from the ground up, but it’s a fairly straight forward process that will benefit you substantially if you follow through with it. Even someone who has gone through bankruptcy can still buy a home, if they put in the time to rebuild their credit.
Where Do I Start?
If you’re filing or completing your bankruptcy, the first thing that you’ll notice is that your credit score will be very poor. Instead of feeling overwhelmed, why not sign up for a low limit credit card and then pay it off on time every month to help to get your credit score back on track? Because you declared bankruptcy you might not be able to purchase a new house just yet, but you’re definitely going to be on your way to rebuilding your life if you start off small.
What Do I Do About My Low Credit Score?
One of the main issues with filing for bankruptcy beyond a low credit score is that lenders may not be as willing to offer a mortgage on a new home to you if they don’t trust that you’ll be financially able to return their investment. That’s why it’s important to slowly build your credit score back up, while saving money behind the scenes to go towards your down payment. One of the most important things to bear in mind is to cut out any excessive debts and be sure to meet all of your repayment deadlines. A single missed payment could be disastrous and set your home-buying intention back even further. Buying a home after bankruptcy takes work, but it isn’t impossible.
When Do I Meet with a Lender?
When you feel that you’re ready to approach a lender for a potential mortgage after you have declared bankruptcy, be sure to have all of your financial information with you for reference. You can inform your bank or lender that you have previously filed as bankrupt and let them know that you have taken the necessary steps to get your financial standing back on track. If you can clearly demonstrate that you’re keeping your loans to a minimum and that you’re keeping up with all of your repayments, then you’ll have a much higher chance of being accepted as a customer and be able to qualify for a mortgage on a new home.
Should I Get A Lawyer to Help Me?
If you’re ever unsure of how to proceed with your finances after experiencing bankruptcy, then it’s a good idea to seek professional advice from an attorney. You’ll want to find a reliable attorney to suit your needs, so stay close to home when it comes to sourcing advice. If you’re in need of a good bankruptcy attorney in Simi Valley specifically, then search for attorneys in and around the area. The same would apply to any city or state as different locations have different laws and policies that govern bankrupt individuals.
One of the most important things to remember is that bankruptcy won’t define your future; it’s just a definition of your past. So make those changes and put new measures into place to get back on track and you’ll soon be in a position to purchase your own home once again.