Recovering after filing for bankruptcy can seem overwhelming, especially when you’re limited by what you can do. Although you are now able to manage your debts, your credit score is low and it’s difficult to get a loan or in some cases, a job. You may be interested in learning how soon you can buy a new home after bankruptcy. Here’s how to get started.
Understand There’s a Waiting Period
Bouncing back after bankruptcy takes time. That’s just part of filing for bankruptcy. Generally speaking, there is a waiting period with any mortgage lender after you file. Who you want to go with depends on how long the waiting period is. Most traditional banks and mortgage lenders will not provide you with a home loan until you’ve passed the four-year mark after your bankruptcy. However, some lenders, like the FHA and VA, may approve a home loan in as little as two years after filing for bankruptcy.
Use Your Waiting Period to Boost Your Credit Score
While the thought of taking out a credit card after bankruptcy seems frightening, it can actually help you repair your credit faster. However, it’s likely that you’ll only be able to get a secured credit card. This works in your favor, so it’s nothing to worry about. Apply for and put a deposit down on a secure credit card, and begin using that card responsibly. Your payments will be reported to the three major credit bureaus, and you’ll begin establishing good credit again.
Talk to Your Bankruptcy Attorney
If you’re struggling with getting back to normal after a bankruptcy and want to know when and how you can buy a house after filing, don’t hesitate to reach out to your bankruptcy attorney. Your lawyer has access to a multitude of resources and may be able to help you get back on track faster, so you can apply for a home loan as soon as the waiting period is over. Without adequate credit management during the waiting period, you may find that you do not qualify for a home loan, even after the 2-4 year waiting period is up.
At the Law Office of Howard Tagg, we can help you navigate life after bankruptcy. We understand the unique challenges you’ll face and can assist you in building your credit. Contact us now for a consultation by calling (903) 581-9961.