A bankruptcy will eliminate debts but can also leave your credit in kind of a rough state. But following a bankruptcy, what should you be concerned with? And how long do you need to wait before considering owning a home?
Typically, when it comes to concerns about purchasing a home, often people find themselves worried about one of two things; credit score and having enough money saved for a down payment. You can read more about how much is needed for a down payment here; we are addressing a credit concern today of many who have struggled with mountainous debt in the past—bankruptcy. After reading this post, our hope is that you are better able to determine your timeline for increasing your chances of being approved for a mortgage.
Knowing the waiting periods for the different types of loans can be reassuring; know that it is possible to take this step toward a sound investment, a home. Generally, having good established/ re-established credit based on 3 or more accounts for 24 months will increase the likelihood of being pre-qualified for a mortgage. With that said, below are the waiting periods for chapter 7 and chapter 13 bankruptcy.
If you find yourself in the middle of the waiting period, now is the time to act. Making good credit decisions now will impact your ability to secure a mortgage in the future. Learn what you can do now by reading our post about credit readiness.
It is important that you do not buy into some mortgage refinancing myths. If you do, it could cost you some serious savings. If recently the people you know are rushing to refinance a mortgage, there is an actual reason behind the decision. Mortgage rates have taken a plunge over recent months and it is […]
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Mortgage interest rates have been at historic lows, causing many to look into a refinance of their mortgage, and given the recent market conditions we cannot be certain how long this trend will continue. If you would like more information on why we have seen shifting interest rates, check out this related blog post. There […]
Private Mortgage Insurance (PMI) lowers the risk to the lender, should you default on your mortgage payments. Please note that PMI does not benefit you, the borrower, but instead protects the lender with whom you are getting the mortgage. PMI is often required with loans that carry a lower down payment. In fact, because of […]
With just $500 dollars, you can make a huge difference in your home with some upgrades. These upgrades can increase the attention of your house if you’re planning to sell, or they may help modernize your home without going through a major renovation. Below are some of the upgrades you can do on a budget. […]
Cleaning isn’t glamourous, but someone must do it, right? We’ve rounded up a couple of tips and tricks to help you make the most of your next cleaning spree around the house. Tip 1: Create a cleaning schedule- this will help to reduce or eliminate the stress you feel about cleaning. Create your schedule […]