If you've declared bankruptcy in the past, you may wonder if it's possible to qualify for a home loan. Well, chances are you could get a mortgage loan from a lender, but are you really ready to buy? Home ownership requires a lot more than just making monthly payments on your mortgage. Other expenses, like taxes, insurance and maintenance, can chip away at your budget, too. Here are some ways to tell when you're ready to buy a house: YOUR INCOME IS STEADY If you have a reasonably long employment history with the same employer--at least a year--lenders will look on you more favorably than someone who's only been with their company for a few months. A steady income, such as a salary or regular wage, is also preferable to sporadic income, such as the type that comes to freelancers, entrepreneurs or the self-employed. Although you can get a home loan in these circumstances, it's best to wait until your income stream is reasonably steady so you know you'll be able to make your monthly mortgage payments. YOU'VE SAVED A DOWN PAYMENT Although mortgage loans exist that allow borrowers to qualify with no down payment, these loans tend to cost more. No or low down payment loans typically charge higher interest. Moreover, you'll have to borrow a larger amount, which means higher monthly payments and more cost to you in the long run. In general, you should have at least 10% of the purchase price of your home saved for your down payment, although many lenders prefer that you have 20%. YOU CAN MANAGE YOUR CREDIT After declaring bankruptcy, you may have signed up for a new credit card or loan. If so, take a close look at how you've been handling that debt. Are you making regular monthly payments? Are they on time? If you've been handling your new debt responsibly, you may be ready for a home loan. However, if you're struggling to pay the monthly minimum, it might be a good idea to wait to buy a home until you're on more solid financial ground. Here is a list of recommended Home Mortgage Lenders online. It's important to use a reputable lender online to make sure your personal information is secure. It is possible to get a home loan after bankruptcy if you find a lender that deals with those types of mortgages. However, it's important to make sure that you're personally ready to handle a home loan before you seek out lenders. |
