While going bankrupt can free you from all debts, it is still not a preferable option considering the future. Your credit score will be hampered and it can become difficult for you to get loans and/or mortgages. However there are certain ways in which you can still get a mortgage after bankruptcy.
- Check and correct your Credit Reports regularly
Bankruptcy details can show on your credit reports for the next 10 years. Ensure your credit report carries valid address and other details of debts. Having an updated and accurate credit report can lessen your waiting time.
- Buy what is within your limit
Try to keep your DTI or debt to income ratio reasonable. With a high DTI you are at risk to miss out on monthly mortgage installment payments, which is of course something you don’t want.
- Avoid down payment
You can avail mortgage loans with a credit score of 580. These are certain Government mortgage programs that allow you to pay somewhere around 3.5-5% down payment. Some loans like VA and USDA loans need no down payment at all. So take a wise pick.
- Improve your credit score
You can work on improving your credit score before applying for a mortgage loan. There are several ways to do so. For instance, meet up your creditors and negotiate a pay for deleting your name. If a friend or relative has a good standing for his/her credit card, ask them to add you as an authorized user.
- Get in touch with a law firm
You can contact your local law firm to help you get your mortgage. For example, a bankruptcy attorney in San Diego BLC Law Center can help you revise your credit scores and guide you to get a mortgage from the bank.