What You Need to Know About Buying a Home After Filing for Bankruptcy

Making the decision to file for bankruptcy probably wasn’t easy but you had no choice because of the creditor harassment calling you at all hours of the day and night. You were drowning in debt and needed a new start.

You may have needed to file for bankruptcy because you were under water on your mortgage but having a home is very important to you and your family. So how do you buy a home after bankruptcy filing? Let’s be straight, most lenders will have your home in security for your mortgage loan, your lender will be less likely concerned about your ability to repay the loan.

Obviously the bank is going to look at your credit score and you can start rebuilding your credit quickly after bankruptcy by controlling your expenses and start showing your strong payment history.

Most lenders are more interested in your down payment, the stability of your income and your ability to pay your loan than your past financial troubles. You should take at least several years to rebuild your credit rating and, more importantly, save a down payment on your home. The larger the down payment, the less your monthly payments. And, of course, you don’t want to get into trouble by buying a home that you can’t afford.

You can learn more about bankruptcy and buying a home after a bankruptcy filing by contacting Tampa Bay bankruptcy attorney Nancy Cavey at Sunshine State Bankruptcy.

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