Can I Get a Mortgage after a Bankruptcy Discharge In Dallas?
If you have undergone the pain of filing for bankruptcy under chapter 7 or 13 in Dallas, Texas, and have gotten a discharge in your bankruptcy case, then you can get a mortgage to buy a home.
However, you will find that the rules of the game have changed since you’ve filed for bankruptcy.
Here are some tips to help you get a mortgage.
Continue Paying Your Debts According To Schedule
If you filed for bankruptcy under chapter 13, and if you are still paying off your car loans on cars or other assets, then you should continue making your payments.
Take care as to not to miss any installments, since you will immediately draw attention to yourself as a bad credit risk.
Once your bankruptcy is discharged, then you will be eligible to apply for a new mortgage. However, if you have filed for bankruptcy under chapter 7, then you will need to wait for 2 years until you become eligible to apply.
Arrange For a Secured Credit Card
You will be able to arrange for a secured credit card by paying a suitable deposit. The main aim here is to spend money through the secured credit card instead of cash. You should pay the bill on time, since this will ensure that your credit rating keeps improving.
This strategy will pay off when you decide that it’s time to get a new mortgage. You can also try to get an unsecured credit card as time goes by, as this will also help to boost your credit rating.
Start Saving Money for the Downpayment
Once you have your other payments under control, you will need to start saving for the downpayment on your mortgage.
In most cases, borrowers have to arrange for a downpayment, which could be as high as 20% of the value of the mortgage.
If your credit rating has made a comeback due to timely payments on your secured or unsecured credit card, then there are many lenders who will be willing to extend credit to you.
Your initial interest rate may be a bit higher than usual; however, if you make the payments on time for 1 or more years, you could refinance to a lower rate.
Do Not Default On Your New Mortgage Payments
It is essential that you make your mortgage payments on time; otherwise, you could find yourself sliding down the same path that got you into trouble the first time.
By making your payments on time, you will also be ensuring that your credit rating climbs at a faster rate than before. Soon, your credit score could be quite high, and you will be able to get credit cards or loans at normal interest rates.
All is not lost when you file for bankruptcy in Dallas - but time and strict control over your finances can quickly get you back on track.