Getting a mortgage after bankruptcy is not that difficult as long as you know what you're doing, and when all is said and done a bankruptcy mortgage loan can be yours as long as you can rebound from your bankruptcy in an appropriate manner. A bankruptcy mortgage is inherently not really any different from a regular mortgage, and the only difference will be the kind of effect the bankruptcy mark on your credit report will have on you ability to secure such a home loan after bankruptcy.
There are two things you need to look at after your bankruptcy proceedings have come to a close if you want to get approved for pretty much any kind of bankruptcy home loan. First you have the actual bankruptcy mark that is readily apparent on your credit report. This bankruptcy mark does convey some negative effects on your credit score, but mostly it will cause trouble when lenders check your credit and then see the actual bankruptcy on your report. Different lenders have different policies when it comes to bankruptcies, and lenders will fall into one of three categories when evaluating a particular applicant after they have been through a bankruptcy.
The first category of lenders will want to see that you have taken steps to improve your credit, and they will also want you to be at least two years removed from the conclusion of your bankruptcy. These types of mortgage lenders will completely reject your application if you are within this two year time period, and while some lenders do make exceptions, the majority of the lenders in this category will not do business with you if you are immediately coming off of your bankruptcy. If you can do the necessary things to repair your credit then after two years you can apply to these types of lenders and get approved without much of an issue, so repair your credit during those two years and come back ready to apply.
The second category of lenders will not have any kind of two year rule and these sorts of lenders will not have a problem working with you most of the time. These kinds of lenders routinely provide mortgage loans after bankruptcy and while some may consider these types of lenders less than reputable, the majority of these types of bad-credit and sub-prime lenders do in fact operate legitimate businesses and can be your ultimate savior if you are just coming off of a bankruptcy. Due to their leniency, these lenders will most likely charge you more in terms of interest and fees for your mortgage home loan, and as long as you know this going in then you shouldn't have too much trouble getting approved by these sub-prime lenders.
The third category is probably the easiest to describe as these are the kinds of lenders that won't be able to work with you no matter how much you have improved your credit as long as you still have the bankruptcy on your credit report. These lenders have it written into their best practices and loan policies to not work with any borrower who may have a bankruptcy on their credit report, and typically there is nothing you can do to change such policies. The good news is that these sorts of lenders are in the minority, and the majority of lenders will be able to work with you even after your bankruptcy as long as you can supply them with a complete application. Getting a mortgage or home loan after bankruptcy isn't the easiest thing to do in the world but it is not impossible if you can apply to the right kind of lender so look around and perform your own research so that you can eventually find a lender that is willing to work with you.
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