Obtaining credit loan to buy a home can be very hard to come by once you have a history of bankruptcy. However, this does not mean there won’t be any institution that will approve of such application. It is important to note that one can apply for a home loan after 2 years from the declaration of bankruptcy.
How to Apply for a Home Loan Post-Bankruptcy
- First and foremost, you need to get an updated copy of your credit report. Review it and see to it that there are no issues that have not yet been resolved or cleared. If you find one, then you might as well have them corrected immediately before applying for any loan.
- Re-establish credit transactions after bankruptcy. This can be done through acquiring a credit card with the lowest possible credit limit, use it and then make sure you are able to pay them regularly. Ensure that you do not incur overdue balances; this will support your claim that you are now more responsible of handling your credit and finances.
- Save up enough money for a down payment. If you have enough money for down payment, it might just be easier for you to get approved for the loan.
- Take note that, more often than not, banks or financial institutions will most likely charge you with a higher interest rate compared to that of a loan applicant without a history of bankruptcy for the past few years. This is primarily because there is an increased risk that the latter might not be able to repay the money that was lent.
- Look for a credible lending institution in your area. Make sure to find an agent that will gladly help you with your needs during the loan application process. Remember to choose an agent that you feel most comfortable working with.