Mortgage Lenders after Bankruptcy
Many people think they must wait at least seven years to apply to a mortgage lender after bankruptcy. In the past, traditional mortgage lenders have automatically rejected people who had declared personal bankruptcy. This is a common misconception.
While some people declaring bankruptcy have had trouble managing their money, a large number of those declaring have simply experienced unfortunate events. Australians are filing bankruptcy at record-high levels over the last five years. The rise in petrol price and the recent increase in interest rates won’t help either.
There are some ominous signs out there…
Though a bankruptcy is certainly a blemish on a credit report, it does not necessarily disqualify a borrower. Some lenders use a credit rating system to determine whether potential buyers are a worthwhile risk. Unfortunately, bankruptcy gives a low rating.
Can I get a Mortgage after Bankruptcy?
Instead of waiting two years after being discharged from bankruptcy, Lenders are willing to give a mortgage after bankruptcy. Those who have declared bankruptcy liquidation may be eligible for a loan one day after discharge, and those who are in a Part IX debt agreement could also be able to get a mortgage.
Some lenders are even pre-qualifying buyers for a loan, saving time and making the home-buying experience easier and more efficient. When a buyer pre-qualifies they will have the advantage of greater negotiating power.
No matter what the situation, select mortgage professionals have a program that will work for the buyer with a bankruptcy history. If a buyer cannot get approved, there are customized plans that can re-establish your credit.
Because of new options, past bankruptcy no longer needs to stand in the way of getting a home loan. With the help of more non conforming lenders, those who have experienced financial difficulty will have an easier time getting a mortgage.
