Getting a Mortgage in Dallas After Bankruptcy
If you live in Dallas, Texas, having filed a bankruptcy is no bar to obtaining a mortgage. There are many lenders who offer different programs suited to borrowers who have filed for bankruptcy.
When you do not close all your accounts in bankruptcy and have a credit score of 600 and above, it increases your chances of obtaining 100 percent financing. Even when you close all your accounts, you may still be eligible for financing up to 80 or 90 percent.
You should know that filing for bankruptcy does not exclude you from being offered a mortgage. It merely means that you are a higher risk borrower, which in turn means that the rates of interest may be higher and the mortgage fee may be somewhat more than what is charged from other borrowers - but getting a mortgage is still something you can do.
Additionally, because filing bankruptcy clears all of your debts, giving you a clean financial slate, lenders may be more inclined to consider your mortgage application favorably.
Using a Mortgage Broker
If you have filed bankruptcy in Dallas and are seeking to buy a home, your best option is to utilize the services of a reliable mortgage broker. They will be able to get you the best deal suited to your individual situation, taking into account the following factors:
- Nature of the bankruptcy filed
- Length of time elapsed since discharge
- Whether bankruptcy is still active
- Current credit score
- Whether you have reestablished credit since the bankruptcy
A mortgage broker is your best bet for securing a home loan, because they have access to countless lenders with flexible lending guidelines.
This is in contrast to your local Dallas bank, which probably has one fixed set of guidelines that will probably place you in a disadvantageous position for obtaining a mortgage in view of your bankruptcy filing.
Financing Issues
If you are currently in a chapter 13 bankruptcy, it is possible for you to refinance. However, this requires obtaining the bankruptcy court's permission. When seeking permission to refinance, you will have to show the court that you have been consistent in making payments into the plan for at least a year. Refinancing in these cases usually has a maximum loan to value (LTV) limit of 70 to 80 percent.
A qualified Dallas bankruptcy attorney will be able to guide you if you are looking to refinance.
Lenders usually look at the type of bankruptcy you filed when deciding on the type of mortgage financing to offer. For a bankruptcy under chapter 7, the lender will look at the date of discharge; whereas in a chapter 13 bankruptcy, they will consider the date of filing when making a decision to approve your mortgage.
If you live in Dallas, the fact that you have filed a bankruptcy should not deter you from applying for a mortgage. Your financial position may even be much stronger post-bankruptcy, and you will be able to secure your family’s financial future.
If you have questions about your ability to secure a mortgage, you should consult with an experienced Dallas bankruptcy attorney.
Topic: Mortgage in Dallas After Bankruptcy