After Bankruptcy

Buying a Home After Bankruptcy

Under Life After Bankruptcy+ Loans After Bankruptcy+ Mortgage After Bankruptcy

Buying a home after bankruptcy doesn’t have to be all that different from doing it without that on your record. If you really want a home, don’t let your past stop you, but do be aware that you’ll need to be more persistent and patient.

Almost every lender will want you to wait two years after you’ve completed bankruptcy to apply for a mortgage, but it will probably take at least that long to get your other things in order anyhow. There are four things you need to do to prepare yourself- take care of your past problems, save a down payment, build new credit, and secure steady, well paying employment. Taking care of your past problems should be something you do whatever your financial goals. You should obtain a credit report and make sure that all appropriate accounts are marked “included in bankruptcy” and not open or overdue. This is a common problem and a very important one to take care of as soon as you can. To show that you are serious about buying a home after bankruptcy you should have a large down payment, which you should have anyway. To avoid private mortgage insurance you need to have a twenty percent down payment. I know this is a lot of money, but so is a house.

The most important thing to do to build new credit is to make timely payments. Build a budget, stick to it, and stay on time. On that note, getting a credit card and using it lightly is a great way to build credit. Right after bankruptcy I would suggest looking at secured credit cards. As with anything, look at several deals to find the best rate. It’s also a good idea to secure a small loan to show you can be responsible with one, but be aware that your interest rates will be very high. The other thing that you need to do, which will be really needed for all other things is a well paying, steady job. The longer you’ve been with your job, the better for your application.

It may seem frightening and impossible after your past problems, but buying a home after bankruptcy is possible.

By Jennifer

Buying a Car After Bankruptcy

Under Life After Bankruptcy+ Loans After Bankruptcy

Buying a car after bankruptcy can definitely be done and can even be part of a thorough plan to rebuild your credit. When done right there can be more positive outcomes of this goal than you’ve even been thinking about.

Hopefully right after everything was discharged you got your hands on your credit report and made sure that anything included in bankruptcy was marked as such and not open or overdue. If this is not the case you want to do this first- the better you can make your history look the better your financing experience will be. You also want to try and accumulate some positive credit history first. You can do this through your bank. Most banks offer secured credit cards. You deposit a few hundred dollars into a savings account and the amount you deposit is your new card’s limit. This savings account is collateral for the bank, so if you don’t pay they have another way to collect their money. When buying a car after bankruptcy these simple steps can help improve your financing odds. Once done, I recommend starting your auto loan search with your local credit union. They are known for having the lowest interest rates and in your situation in particular you want to find the lowest you can. If you decide to try for a loan at the car dealership you can ask to speak to their special financing department as they’ll usually deal with unique situations. Keep in mind that in one to two years, with timely car and credit card payments, your should be in a great situation to refinance your loan for a lower interest rate as your credit has improved.

Remember that people do this every day and not to let anyone intimidate or make you feel ashamed about your history when buying a car after bankruptcy.

By Jennifer