It is often considered that if you are bankrupt, you will be unable to get a mortgage for the rest of your life. But how would you know if that’s true or not? The world is full of myths about each issue; the same happened with this mortgage issue.
It’s not true that you can’t get a mortgage after bankruptcy; the market is full of lenders who still grant mortgages to bankrupt applicants. Getting a mortgage with a bad credit score is difficult, but getting a mortgage after bankruptcy is even more difficult. But there is no need to worry; to resolve this issue, you will need a mortgage specialist to help you find a mortgage lender after bankruptcy.
How to get a mortgage after bankruptcy
To get a mortgage after bankruptcy, you must allow enough time between bankruptcy and applying for a mortgage. You won’t be able to apply for a mortgage until you’ve been discharged from bankruptcy. Typically, one year is required to be declared free from bankruptcy; however, time varies depending on the case. The situation will improve as more time goes by. If you contact a mortgage lender immediately after being discharged, your application will likely be rejected.
To apply for a mortgage after bankruptcy, make sure to consult with a mortgage specialist. If you use it directly without their help, your chances of rejection are higher. You can do several things to improve your chances of getting a mortgage.
You will face strict guidelines when applying for a mortgage after bankruptcy, so work on other aspects of your profile, such as checking your credit report for errors and learning which lenders offer mortgages after bankruptcy. Before applying for a mortgage, save your cash as much as you can, as an excellent financial record will help you a lot and prove to the lender that you have enough money to pay your instalments without being late. Try to raise your credit score because the higher your score, the more likely your lender will overlook your bankruptcy defect and approve your mortgage application. It’s also possible to get a mortgage quickly, but with high-interest rates and some property as collateral. We at MortgageKey provide professional advice; if you want any information regarding bankruptcy, feel free to ask us.