Filing for bankruptcy can help you overcome financial hurdles that you cannot get past alone. It can also harm your credit, though, and preclude you from qualifying for a mortgage loan for a while. You will be eligible for a mortgage loan eventually after bankruptcy if you work hard, and working with a mortgage broker can help you achieve this goal. Here are some of the ways a broker can help you get a loan after bankruptcy.
Help You Know When You Can Apply Due to Timing Issues
You cannot apply for a mortgage loan after bankruptcy for a period of time. The time you must wait depends on two main factors:
Some loan programs have up to a four-year waiting period after bankruptcy, while others have shorter periods. To find out how long you have to wait, you will need to know your filing date and the discharge date of your case. You can tell your broker these things, and the broker will give you a timeframe. You might already meet the requirement, depending on your situation.
Provide Strategies for Improving Your Credit
Next, a broker will look closely at your credit report to see where you stand. If your credit score is not high enough, the broker can provide strategies for improving it. Your credit score affects your ability to qualify for a mortgage, so you should aim to increase your score. One way to do this is by getting a credit card. When you use a credit card properly, it can increase your credit score over time.
Offer Tips to Help You Learn How to Improve Your Financial Position
The other thing that affects your ability to get a loan is your financial position. Lenders use various ratios to analyze a person's finances, including the debt-to-income (DTI) ratio. The DTI ratio is a vital factor in your loan eligibility, but there are ways to improve yours. For example, if you take a second job, you will instantly increase your income, which will improve your DTI ratio. Lowering your debt also helps improve the ratio.
If you want to buy a home and need a mortgage loan, talk to a home loan broker. Even if you filed for bankruptcy in the past, you can qualify for a mortgage loan at some point. You can find out more by talking to a broker.
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