Getting a Mortgage After Bankruptcy

Mortgage after Bankruptcy - The First Steps

Getting a mortgage after bankruptcy will not be easy but this does not mean that it is completely impossible. Obtaining the mortgage after bankruptcy will depend on the other aspects taken into account during your mortgage application. Obtaining a mortgage after bankruptcy will heavily depend on your guaranteed income and the amount of money you have as a deposit. So your first steps will depend on your ability to provide both of these things.

Mortgage after Bankruptcy - Some Tips

Following bankruptcy many lenders will not lend to you for a period of at least two years from the time of the bankruptcy discharge. From this two year benchmark onwards obtaining a mortgage after bankruptcy will become much easier. The best way to ensure that this happens is to correctly manage all your debts from the time of bankruptcy discharge onwards. This means paying all of your repayments on time and building up your credit rating. Some other mortgage after bankruptcy tips include:

Timely Payment - If you are looking to get a mortgage after bankruptcy in 2 years or under from the time of the bankruptcy discharge, you will need to have a near perfect payment history since your bankruptc

y discharge. This means continuing to pay off debts such as your home and cars that were not discharged in the bankruptcy.

Deposit - The chance of gaining a mortgage after bankruptcy is greatly increased by the amount of deposit which you have to put down on the house. As little as a 3-5% deposit may be enough to help you get approved.

Limit Further Debt - By limiting the amount of other debts such as credit cards or bank loans you are increasing your chances of obtaining a mortgage after bankruptcy. Remember that your debt-to-income ratio will be evaluated by the mortgage providers so all further debt should be limited as much as possible.

Credit Report Check - Don't presume that the information on your credit report is automatically correct. It may contain mistakes and should be checked for accuracy. You can often request a free copy of your credit report through credit monitoring companies and credit reporting agencies. Remember that every inaccurate piece of information contained within the report may work against you. Report any mistake found as swiftly as possible. This will speed up the corrections within the report. By keeping an eye on your credit report you are ensuring that the creditor's view of your credit history is a fair one. The removal of any inaccurate information will help establish a more favourable debt-to-income ratio.