Review Your Credit Rating

It is possible to apply for a home mortgage as soon as the day after a bankruptcy has been discharged. However, the first few years after filing for bankruptcy may not be the most desirable time to apply for a mortgage. 

A bankruptcy can drastically lower your credit rating initially. Many mortgage lenders determine the rates and terms you may qualify for based in large part on your credit rating. 

If you apply for a mortgage before you have re-established a good credit rating, your loan request may be subject to a higher interest rate and less desirable terms. 

Over time, however, if you make your debt payments on time as required, your credit rating may improve to a good or even excellent rating.

Shop for Rates and Terms

Some lenders may still be timid about lending to you even if several years have passed since you filed for bankruptcy and even if you have re-established a decent credit rating. 

It may help you to get approved for financing with the most desirable terms if you have a larger than required down payment for a purchase or if you have significant equity built into your home for a refinance. 

It may also help you to get more attractive financing by shopping for rates and terms. It can take a significant amount of time to shop for rates and terms on your own. 

Because of this, it may be easier for you to find a great mortgage after bankruptcy if you work with an experienced mortgage broker. 

Some mortgage brokers specialize in more challenging loan requests, and their skills and expertise may be used to your advantage.

While you may be timid about applying for a mortgage after filing for bankruptcy, it is possible to get loan approval for a mortgage. 

In fact, provided you have taken steps to re-establish your credit rating and time has elapsed since you filed for bankruptcy, you may be able to qualify for attractive loan terms.

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