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Can You Buy A House After Filing For Bankruptcy?

If you decide that bankruptcy is the right option for you to help overcome your debt issues, one thing you might wonder is whether you will be able to purchase a house after filing. The good news is that you can buy a house after bankruptcy, but it is important to know that you will not be able to do this right away. Here are several things to understand if you want to buy a house after filing for any branch of bankruptcy.

You hold the keys to improving your credit

Filing for bankruptcy will affect your credit as soon as the bankruptcy court notifies the credit reporting agencies, and the posting of your bankruptcy will not fall off your report for many years. This will affect your credit negatively, but there are so many things you can do that can offset this derogative posting on your credit report, and it is up to you to take action to improve your credit score.

For example, you can fight inaccuracies on your report to help your score increase. You can also get loans and repay them as scheduled in order to improve your credit score. Taking the right steps will improve your score, and this is something that is in your hands. Sitting back and doing nothing about it will not cause any changes in your score, and this will prevent you from qualifying for a mortgage loan as quickly.

There will be a waiting period

Secondly, no matter what type of bankruptcy you filed and no matter what type of mortgage loan you want to get, you should expect to have to wait at least two years to get the loan. This occurs because there is a mandatory period of time in which a person must wait after filing for bankruptcy to get a loan. This time period varies by chapter type of bankruptcy and by loan program, and it can be as short as two years but as long as 6 or 7 years.

It will be harder if you went through a foreclosure

If you ever went through a foreclosure and filed for bankruptcy, you should expect to wait even longer. A foreclosure on your credit report is another red flag to lenders, and it will require waiting extra time before you qualify for a loan.

Getting a mortgage after bankruptcy is possible, and you may qualify faster if you take the right steps. You can learn more by contacting law firm services and talking to a bankruptcy lawyer about the effects of bankruptcy on your credit and ability to get credit after filing.