Getting Approved For A Mortgage Post Bankruptcy

Posted by Chris Channing

April 18, 2009

by Chris Channing

There are several means of obtaining a loan, even if you have filed for bankruptcy recently. The industry standard is to deny any applicants who have had a bankruptcy, but there are still solutions and loopholes that consumers can take advantage of.

Your average bad credit loan lender may not even approve a mortgage loan to someone who recently had a bankruptcy. It is about average for the borrower to wait two years after the initial bankruptcy before applying, so as to build some credibility in the mean time. This will of course require that you stay in fair financial standing for the two years following your filed bankruptcy.

Any kind of lender is going to need to see proof of steady income, so this is even more important for those who have filed for bankruptcy within the past few years. When you go to see your lender, be sure that you have already had stable income, and that you have kept a minimal amount of debt since the bankruptcy. If you haven’t, there could be problems in convincing the lender that you can take on a loan.

Try to focus on a high deposit to show the lender that you mean business this time around. If you can put up as much as possible, it will show the lender that you truly believe that you have learned a lesson in financial responsibility and are willing to make things right this time around. In addition, it helps lower interest rates.

If you don’t seem to have two years on hand to wait out the effects of the bankruptcy, you will need to consider other options. One method is to simply obtain a cosigner, who will be able to vouch for your financial stability. You may also decide to simply put down a large enough deposit to interest the lender, although it will have to be a very substantial deposit. Whatever the case, you will have to obtain your credit report to see how bad the damage is.

Some specialized lenders will also work out special deals to help ensure you are going to make good on the promised repayment plan. Allowing a lender to automatically deduct payment from your bank account, for example, is a great way to help exhibit trust. You may also try putting up anything of value you might have for collateral consideration.

Final Thoughts

Even if you get turned down the first few times, remain adamant that you will eventually find a lender who will believe in you. You can try looking on the Internet, where lenders are abundant, and more likely to offer you a better loan than elsewhere.

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Learn more on Mortgage After Bankruptcy and Discharged Bankruptcy Mortgage.

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