Bankruptcy can make it more difficult to get approved for a home loan, but it is not impossible. Here are five ways to increase your chances of getting a home after a Utah bankruptcy:
- Rebuild your credit: After bankruptcy, it is important to focus on rebuilding your credit. This can be done by making timely payments on any existing debts, getting a secured credit card, and keeping your credit utilization low. By improving your credit score, you will be more likely to be approved for a home loan.
- Save for a down payment: Many lenders require a down payment of 10-20% of the purchase price for a home loan. By saving for a down payment, you will show lenders that you are financially responsible and committed to making the investment.
- Consider FHA loans: The Federal Housing Administration (FHA) offers home loans to borrowers with lower credit scores and smaller down payments. FHA loans may be a good option for those who have gone through bankruptcy and are looking to buy a home.
- Get a co-signer: A co-signer with a good credit history may help you qualify for a home loan. The co-signer is essentially vouching for your ability to repay the loan, and lenders may be more willing to approve your application with a co-signer.
- Shop around: Not all lenders have the same criteria for approving home loans after bankruptcy. It is important to shop around and compare rates and terms from different lenders to find the best option for your individual situation. Working with a mortgage broker or loan officer who specializes in working with borrowers who have gone through bankruptcy can be helpful.
Filing bankruptcy is a big decision. What you do after you file bankruptcy is very important. Getting into a home is a life long goal for many people. You sometimes need a little bit of help to know whot to do after a bankruptcy to achieve your financial goals. Thats what we try and help clients archieve. Thats why I wrote the book LIFE AFTER BANKRUPTCY: The Game Plan to Rebuild, Restore and Renew Your Credit After Bankruptcy! Click below to get your copy of the book that will help you bounce back after your Utah bankruptcy.