How A Mortgage Broker Can Help You Buy A House After Bankruptcy

When you initially file your bankruptcy documents, you might think that buying a house will be out of the question for decades. While it might take some time before you can purchase a home, buying one after bankruptcy is not impossible. In fact, you might be able to buy one sooner than you think, but you will need to take the right steps. The best step to take is to hire a mortgage broker. A broker can help you prepare for the home-buying process after bankruptcy, and here are some of the ways they might help you.

Inform You of the Waiting Guidelines

The first thing a broker will do is to tell you the waiting guidelines. After you file for bankruptcy, you must wait a specific number of years before you can apply for a loan. The exact number of years varies by the bankruptcy branch you used and the loan type you want to get. The minimum waiting time is two years, but you must wait even longer with some loan types. Your broker will tell you the timeframe you need to know.

Help You Find Ways to Boost Your Credit

The second thing the broker can do is to help you find ways to boost your credit. If you do nothing with your credit after bankruptcy, your credit score might suffer for many years. Instead of doing nothing, ask your broker what you should do. When the broker tells you what to do, follow through with the suggestions. If you do this, it could cause an increase in your credit score.

Emphasize the Importance of Saving for a Down Payment

The broker will also talk to you about saving for a down payment. You can face fewer challenges with getting a loan if you have more money to offer as the down payment.

Search for Loans for You

When the broker feels that you waited long enough and have a high enough credit score, they will begin searching for loans. The broker will look for the best loan options to offer you and will help you apply for them.

If you want to buy a home after bankruptcy, you need a mortgage broker. When you work with a broker, you might be able to buy a house faster than if you did not hire a broker. To learn more, find a mortgage broker in your area for help.

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