| Each year, millions of people file bankruptcy as a | | | | lenders consider two factors: credit scores and |
| means of erasingtheir consumer debts. While this | | | | creditreports. |
| approach may relieve stress, a bankruptcyis damaging, | | | | Although a bankruptcy appears on your credit report, |
| and will hang over your head for the next ten years. | | | | having a highcredit score will increase your odds of |
| Still, it is possible to overcome bankruptcy. The key is | | | | getting a comparable rate. |
| making smarterfinancial and credit decisions. With this | | | | Unfortunately, if you buy immediately following a |
| said, some people choose topurchase a home after a | | | | bankruptcy, you will not havethe opportunity to boost |
| bankruptcy. Here are a few pointers to consider | | | | your score. |
| whenbuying a home. | | | | Reasons to Buy a Home after Bankruptcy |
| Reasons to Delay the Buying Process after | | | | Lenders will approve mortgage loan applications one |
| Bankruptcy | | | | day following adischarge. Therefore, it is possible to |
| If you consult with mortgage or financial experts, they | | | | get a home after a bankruptcy. |
| will likelydiscourage you from buying a home following | | | | Buying a home is perfect for rebuilding credit. |
| a bankruptcy. After yourbankruptcy is discharged, | | | | Moreover, it is thequickest way to increase your credit |
| there is a black cloud that looms over your | | | | score. |
| creditreport. | | | | After a bankruptcy, the average person has a credit |
| When any prospective lender reviews your report, | | | | score below 600. |
| they will be notifiedof your recent or past bankruptcy. | | | | Good credit consist of credit scores 650 and above. |
| In some instances, this justifies animmediate denial. On | | | | Maintaining currentmortgage payments will gradually |
| the other hand, there are lenders eager to helpyou | | | | increase your score. After two years ofregular |
| establish or rebuild your credit. Thus, they will approve | | | | payments, you will have established a good payment |
| a loanrequest. Nonetheless, the penalties are steep. | | | | history. |
| Higher mortgage rates can be anticipated when | | | | Hence, you may qualify for a low rate refinancing, |
| purchasing a home afterbankruptcy, especially if you | | | | which may lower yourmortgage payments. |
| have not established other creditaccounts. Mortgage | | | | |