If you have recently filed bankruptcy, you may have some questions about his ability to get a mortgage. Here are some common questions about mortgages after bankruptcy:
How long after my bankruptcy has been discharged I expect to get approved for a mortgage? - Generally, mortgage lenders are willing to consider an approval for a mortgage after 2 years. Some lenders are more stringent than a wait 3 years to begin to consider funding. It is possible to obtain mortgage financing before 2 years from the date of discharge, can only end up needing a down payment or you may have to settle for an interest rate much higher.
"Can I get the best rates available?” Is it possible? - Not likely. The most likely way of obtaining a lower interest rate would have a large down payment. In addition, another factor contributing to what interest rate you qualify and how well you have paid your bills since the bankruptcy discharge.
What other factors can help me get approved for a mortgage? - Credit is only one of the few major factors to obtain a mortgage loan. Other factors include employment history, the debt / income, loan to value to households, income and down payment. So therefore, if you have credit problems, it is important not only to work on increasing your credit score, but to strengthen the other factors working for you in the loan process.
How long does a bankruptcy affect my ability to get a mortgage? - A Chapter 13 bankruptcy stays on your credit report for 7 years and Chapter 7 bankruptcy stays on credit for 10 years. However, from the day following the date of bankruptcy discharge, as your credit improves, improves your credit score. As you make payments over time, your credit score will keep rising and may be in the high 600 or 700, even before the declaration of bankruptcy has come off your credit report.