How To Get Mortgage When Bankrupt – Being a homeowner – if you have started taking interest in the real estate industry, you might know what makes the homeowners or the Winter Park Realtors, intimidated by the process of the mortgage loan.
According to Downtown Orlando realtors, when you opt for a mortgage loan and converse with lenders, you might stumble upon some lenders who would ask you intrusive questions, sounding a tad bit personal. But considering the strict regulations of getting a mortgage loan, it has now become a necessity to keep everything, from paperwork to your credit score, absolutely picture perfect.
So what would you do if you have bad credit history or if you are bankrupt?
Well, despite the stringent regulations, you must be relieved to know that sometimes, you can get a mortgage loan even if you are bankrupt.
Then read on, as we discuss some of the major factors that must be considered if you want to land a mortgage, being bankrupt.
The Duration of Your Bankruptcy
One of the factors that influence your possibilities of landing a mortgage during bankruptcy is the time passed since your bankruptcy. Even though you might come across different requirements from different lenders, the majority of times, the acceptable time frame, since the bankruptcy is filed, is two years.
Similarly, some lenders may require a time period of at least five years before a person can opt for a mortgage. However, if at the time of mortgage application, your credit history is exceptionally good, chances are you can have some exceptions.
We all know how important a credit report is when it comes to the approval or denial of our mortgage loan. Particularly, this report reflects the credit history of a person and represents a complete picture of their prevailing financial position. As per the Winter Park Realtors, many lenders check the credit report thoroughly to ascertain if any improvement can be expected in terms of your history.
Hence, once the bankruptcy is discharged, you must ensure it does not reflect any other negative signs as this can disrupt your credit status for future loans. So if your credit report shows a downward trend to your lender, after the discharge of bankruptcy, chances of obtaining a mortgage loan will eventually decrease, even more.
Reason behind Bankruptcy
It is obvious that the reason behind your bankruptcy itself is a major factor that can make or break the mortgage deal for you. So if your bankruptcy was due to loss of a job or maybe a severe medical emergency, you still have a chance to avail mortgage loan. But if the reason is frivolous spending practices and failing to handle finances responsibly, you must not expect your lender to approve your mortgage – as the Downtown Orlando realtors suggest.
In a nutshell, you must consider the above-discussed factors before applying for a mortgage when bankrupt. Moreover, if you choose to go with a well-reputed and professional buyer’s agent such as one offered by Megan Dowdy, you will definitely receive complete professional insight to resolve such complex credit issues.