After the mortgage crisis of a few years ago, it is more difficult for people to obtain a home loan. This is especially true for people with credit issues. So if you aren’t a home owner and are considering filing for bankruptcy, you might be concerned about your chances of buying your own home. Though having a bankruptcy on your credit report might be a set back, it is not something that can keep you from ever owning a home.
Unfortunately, many lenders will not give someone a loan for two or three years after they’ve filed for bankruptcy. However, think of this as an opportunity. After the financial relief that bankruptcy offers, you will be in a much better financial position. You can take advantage of the two-year waiting period to rebuild your credit. You can also use that time to save money for a down payment on your home loan. A good down payment can help increase your chances of getting approved for a home loan and may even get you a better loan rate. On top of that, having a down payment means you will start off with equity in your new home, which will make it easier to resell, if that is what you want to do.
Filing for bankruptcy, while serious, is not the end of the world. It does not mean the end of your dreams, even the dream of owning a home. If you need help, don’t hesitate to call us. At Behm Law Group, our attorneys specialize in helping people just like you get back on track to achieving their dreams.