Information on How to Finance a Home After Bankruptcy
Bankruptcy can cause your credit score to take a plunge. Luckily, filing bankruptcy today does not mean that you will never be able to finance a home. As early as six month after filing bankruptcy, you can start rebuilding your credit. To be able to finance a home after bankruptcy, you will have to rebuild your credit and show that you are credit worthy.
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Instructions
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Check your free credit report online. You can do this at the Annual Credit Report website. You should visit the site and follow the directions for receiving and printing your credit report. Look over your credit report carefully to make sure there are no discrepancies. If there are, contact the reporting agency such as TransUnion, Experian, or Equifax to dispute the problems you find.
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Get a credit card. Whether the card is secured or unsecured, having revolving credit will help you to re-establish your credit. It is necessary for you to do this to raise your credit score. Do an online search for credit cards after bankruptcy. There are several cards available. You may have to pay a higher interest rate or an annual fee at first.
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Find a loan that will offer you an installment plan. With an installment loan, the payments are a fixed amount for a fixed period of time. These would be car loans, student loans or personal loans. Checking with your bank is a good idea. They may offer a plan to loan you money and put it into a savings account where they automatically withdraw the payments every month.
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Make all credit card and loan payments on time. To finance a home after bankruptcy, you will need to show a lender that you are credit worthy. This includes being on time with payments and never going over your revolving credit limit.
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Pull your credit report and credit score after you have had your credit card and loan for three months. This can be done online by visiting the same site. You will need to pay to see your credit score, but when you are ready to finance a home, you will need to know your current credit score.
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Visit a mortgage lender. When you go, take your copy of your credit report. You will fill out an application and the lender will review your application along with your credit report. Be ready to offer a down payment when you finance a home after bankruptcy.
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Tips & Warnings
Compare several credit cards before applying for one.
Have your credit score when visiting a mortgage lender.
