Buying a home after declaring bankruptcy might be difficult, but still possible. Your bankruptcy will have a negative effect on any financial institution, especially loan institutions, and this can cause a great deal of trouble if you want to get a loan for a house. You cannot really do without a house, even after bankruptcy, so you have to take a few measures to get a place to hang your hat even after bankruptcy.
Below are some of the steps you have to take to buy a home even after bankruptcy.
- Learn from your financial mistakes. A house is hardly a home if your mind cannot rest well within it. Acknowledge your mistakes and learn from your bankruptcy. It will get very difficult for you to get quick and easy cash by loans from now on, since filing for bankruptcy no doubt affected your credit score and a bad credit score makes it tough to borrow money from any financial institution. Before you even consider buying a home, you need to learn where you went wrong and what led to your bankruptcy. This can prevent the instance that you will lose the next home you are buying.
- Find your unresolved mistakes. After you file for bankruptcy, your credit report needs to show that you did. Make sure everything from all the banks and financial institutions is in order according to your bankruptcy. Check for any accounts that remain open and unpaid but do not state your bankruptcy. Call the financial institutions that have not recognized your bankruptcy to even out the kinks of your bankruptcy.
- Build up your credit score. After making sure that all the statements concerning your bankruptcy is in order, you need to start making your credit score look better. You need to build a reputation that you have learned your lesson and you can pay what you owe. You can get an installment loan or a secured credit card and pay for them on time. Your timely payments will start picking up your credit score, getting you one-step closer to getting a mortgage for a house. Building up your credit score from scratch after bankruptcy means paying any and all amounts due declared by the judge that oversaw your bankruptcy case.
- Bide your time. It can take a couple of months to build up your credit score, making you eligible for a mortgage or a housing loan. It can take as much as 18-24 months before you can apply for a housing loan or a mortgage, so make sure you pay all your dues and get everything in order.
Following the steps above can help you get a house after declaring bankruptcy. It will take some time, patience and discipline when it comes to paying your dues, but all these are necessary so you can apply for a new home. Buying a house after bankruptcy helps you start fresh from a damaging experience, and you can start adjusting your lifestyle and living debt free by buying a reasonably priced house after bankruptcy.