Regardless of your current financial situation—from good credit to no credit—there’s no denying that we’re living in a tough housing market. So if you’re considering bankruptcy, you might think that if it’s a challenge to become a homeowner for those in the best financial times, it might be next to impossible to acquire your dream home if you’re currently recovering from a Chapter 7 or 13 bankruptcy filing.
The hard and fast truth is that getting your financial house in order following your bankruptcy, especially in order to qualify for a mortgage loan to get the home you want, is more possible than you think. That is, provided you follow a few essential steps to begin creating the proper financial foundation for building your own “home sweet home.”
Rebuild Your Credit
It’s always been important to pay your bills during and following your bankruptcy…and that’s especially true if you’re considering major purchases as your credit recovers. But building back your credit, by actions beyond paying your bills, can be the key to opening the door to home ownership yet again. While it’s not always simple to qualify, attempting to rebuild your credit potential through a secured credit card may be the quickest way to prove your financial capacity, responsibility and stability—even in tough economic times. While bad habits may have led to your bankruptcy, fiscal responsibility following your filing can pay dividends as you set your sights on home ownership.
Save All You Can
It’s vital to a more secure mortgage lending opportunity to not only rebuild the credit you have, but also to save money you need. In many ways—from relieving the burden of medical bills to curtailing credit card debt—bankruptcy can allow for the type of savings necessary to have a substantial down payment, and with it, a better shot at the home you want. Closing the gap between the value of your house and the amount your lender needs to provide makes their decision that much easier. You can build a better foundation in the future by being frugal now.
Take Your Time
While tough times might have called for tough measures, including your bankruptcy, it’s important to take a measured approach when trying to bounce back. Qualifying for a home loan post bankruptcy is a journey, not a destination, and can often take months, and more likely years. As a result, it is essential to be patient, and understand the process for generating the financial goodwill to get back in a mortgage lender’s good graces.
In short, financial problems do not represent a terminal condition when considering home ownership. And with the right economic outlook, planning and patience, you can construct a more than proper plan for making that house down the block your home post-bankruptcy.
Still unsure? Feel like you want someone to have your back when you attempt to build back credit post bankruptcy? Knowing a qualified bankruptcy attorney can not only help you conquer your creditors and face your financial fears, but also provide the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond the housing bubble. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to +1-919-646-2654, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.