Want To Buy A Home Even On Bad Credit? Don’t Worry, Its Possible!
When I tell somebody that they can get access to home loan even after filing for bankruptcy or after a foreclosure, they look at me as if I have gone mad. But, its, true, even people who have bad credit, can still buy a new home! All they need to do is know a few ins and outs before they put in place the process of getting a new home loan, to buy the house of their dreams.
Knowledge about the waiting period
Yes, this is crucial. You need to know about the amount of time wherein you have to just wait it out, before you actually begin the fresh process of buying a home. If you have filed for bankruptcy, you will have to wait for as little as 4 years for getting a loan, but in this case you will only have access to a conforming loan. On the other hand, if you are making the rounds of money lenders, then, even after six months of having filed for bankruptcy, you can get your hands on a home loan. But, in this case the down payment might just be out of your reach; some of these guys actually ask for a 35% down payment.
Improve your Profile for Conforming Loan
I know, I know, this is difficult, but you can try, because this is possible. If you give up, right at the start of the proceedings, then you can never get a home loan. So, here’s what you can do. First up, apply for a credit card, and that too from a major bank. This is possible because the fact that you have filed for bankruptcy, means you now are starting afresh. More importantly, the bank knows you have no debt, and what’s more the lender also knows that you wont file for bankruptcy (if at all you do!) for another seven years.
Another something that you can do is get steady employment and earn regularly. At the same time start saving for a down payment, not much, but at least a 10% down payment.
Get a Good Advisor
Whatever the amount of material you read or the amount of expert advisor materials that you go through on the internet, there is nothing like the real deal. So, get in touch with an expert home loan advisor who has prior expertise in handling cases like yours. This will mean that the person has prior knowledge of the process that can help people with bad credit get a home loan. All you will need to do is follow whatever he/she says. Remember, the process of getting a home loan after you have filed for bankruptcy or have faced foreclosure etc, is quite complicated. So, having a helping hand is always good.
As can be imagined, this is not the be all and end all of how you can buy a home even with a bad credit. But, I believe this is enough to instill some confidence in you, so you can get started. So, good luck.