Filing for bankruptcy has many consequences, including the negative impact it has on your credit. As a result, you might think that you will never qualify for a mortgage loan afterward. While it might take some time and work to be eligible for a mortgage, you can get one after bankruptcy. If this is your goal, one of the best things you can do is talk to a mortgage broker. A broker can help you understand the requirements for getting a loan after bankruptcy and help you prepare for one. Here are several steps the broker might explain and encourage you to do.
Wait the Necessary Time
The first thing to know is that there are timing issues for mortgages after bankruptcy. The exact time you must wait depends on what branch of bankruptcy you filed and the type of loan program you want to use for your mortgage. The amount of time you must wait is usually in terms of years from the date the court discharged your case. You might have to wait anywhere from one to six years, and a mortgage broker can tell you exactly when you meet this requirement.
Dispute Inaccuracies on Your Credit File
From the moment your case ends, you can begin working on your credit. An excellent place to start is through the dispute process. Disputing inaccurate postings on your credit file can help you improve your score. You can access your credit report to see what it contains. If you see anything that is not correct, work through the dispute process. This process takes some time, but it can help you increase your score.
Build Your Credit
Your mortgage broker might suggest using techniques to build your credit. Building your credit involves adding positive things to your credit file, such as payments on debts or new accounts. If you are not sure where to begin, ask your broker.
Work on Improving Your Financial Position
The other thing your broker might suggest is working on improving your financial position. To qualify for a loan, you must meet the criteria. One measure is your debt-to-income ratio, and your broker can explain what this is and how to improve it.
If you follow these tips, you might be eligible for a mortgage loan in just a couple of years after your bankruptcy case. To learn more, contact a local mortgage broker like Cornerstone Residential Mortgage to talk about your situation and goals.