|
Home Loans: Buying a home after bankruptcy isn’t impossible, but it is advised that you wait 2 years before applying for a home loan. There are ways of getting a home loan sooner through, some banks will consider approving a recently rehabilitated individual.
The property will serve as collateral for the loan, so if there is non-payment on the home loan the bank will repossess the property. In addition, getting a home loan is an ideal way to build up your credit profile again. Here are some tips to improve your chance of getting a home loan after rehabilitation.
Home Loans - Build up credit lines
It’s not a rule to wait out 2 years before applying for a home loan, but it is advantageous to wait. After rehabilitation you must start building up your credit again.
So how do you do this? Well you need to apply for a credit card because it’s the simplest and fastest way to build up creditworthiness. At first you might only get a small credit limit, but once your credit record improves they’ll increase it gradually, with your permission of course.
The ideal scenario would be to open 3 accounts and keep low balances. Don’t pay late and if you can pay off the full balance at the end of each month.
Home Loans - Keep an Eye on Your Credit Report
As soon as you start to re-gain your creditworthiness get into the habit of checking your credit report regularly to make sure there aren’t any mistakes. Join a credit monitoring company.
They are effective because they will be able to spot any abnormal or suspicious activity that needs to come to your attention.
In addition, the company will let you know if accounts are being opened in your name. If there are mistakes on your credit report you must phone the credit bureau and lodge a dispute so that they can resolve the problem
Home Loans - Have a Deposit
If you wait 2 years after rehabilitation to buy a home it’s to your benefit because you will be able to get a 100% home loan or may only have to give a small deposit. If you want to buy a property soon after rehabilitation you must have a deposit.
Additionally, your credit record must be squeaky clean after rehabilitation, if there are late or missed installments on your record you won’t qualify for a home loan.
Well, I know that is a lot for you to take in so I am happy to spend some time with you and answer any questions you have about home loans and making sure your Home Loan is approved.
|
