Can I buy a home if I had a Bankruptcy or Foreclosure?
It’s not a simple answer to this question because there are so many variables considered. The chart below is a good guide for you to reference. However, there may be variables for each situation. It’s important that you work with an experienced mortgage lender to assist you in obtaining a loan for your next purchase.
What financial misfortune you previously experienced is unfortunate, but the real question will is – Where do you stand today? Mortgage lenders want to know how are you doing financially. Do you have re-established credit? Are you employed and have you been on the job for 2 years or more? Are you self-employed? These are significant considerations in your borrowing capability.
To establish credit you should have several credit cards. By having credit cards with low balances you pay off every month, this will help you to establish good credit. It’s important that you keep the credit card balance below 1/3 of the available credit on the card. Do not max out the card(s). Diversify the type of credit as well. A car loan and 2 credit cards are suggested. Finally, pay your bills on time. Avoid late pays at all costs.
Buying a home has many complex factors; from finding the right realtor to using the right mortgage lender. Take your time to interview each one. Many times a Realtor has a trusted and local mortgage lender who can help you secure a loan.