Over 750,000 people filed for bankruptcy in 2019, and this number tells you just how common bankruptcy is among people in this country. If you filed in 2019 or anytime before this, you might wonder if you can ever qualify for a mortgage loan. The bad news is that you will have to wait a little while, but the good news is that you can get a home loan after bankruptcy. To get one, you might want to meet with a mortgage broker.
What a Mortgage Broker Is
A broker is a company that works with buyers and lenders. The goal of a broker is to find a lender for a person who wants to buy a house. In some cases, finding lenders is easy. There are also situations when it is more challenging. Brokers generally get paid by the lenders after closing on loans they originate and find. If you have a challenging situation in your life relating to your finances or credit, you might want to go to a broker for help. Having a bankruptcy in your past is the ideal reason to visit a broker when you want to get a mortgage loan.
How a Broker Helps You
The broker will do several things when you hire them for help. First, they will review your financial situation to see if you will qualify for a loan. During this stage, they will analyze your income, debts, and savings accounts. Next, they will review your credit. After evaluating these things, the broker will tell you if you can get a loan now. If not, the broker will explain how long you must wait before applying and other steps you must do to improve your financial position.
Things to Know to Prepare for a Home Loan
After filing for bankruptcy, you can do several things to prepare for a home loan. First, work on building your credit score by taking out small loans or credit lines. Next, work on saving more money to have a larger down payment. Finally, learn the time frames that you must wait after bankruptcy and wait the necessary number of years before applying.
Filing for bankruptcy has pros and cons, but it will not stop you from getting a mortgage loan. It just might take a little extra work and some waiting. You can learn more about this by contacting a mortgage broker of your choice.
For more information, contact a company like Cornerstone Residential Mortgage.
How many times have you put off making repairs around your home because you didn't have the money to make them immediately? Have those decisions caused even more repair bills because you waited to make the repairs? I have done this several times in the past, and, oftentimes, not making those repairs have cost me far more to complete because the damage spread. The whole reason I created my blog was to help others find the financing they need to make home repairs without worrying about choosing the wrong type of financing option. Hopefully, my hard-learned lessons will help you avoid the same struggles that I have undergone.