Ways & How

how to buy a house after a bankruptcy

how to buy a house after a bankruptcy

Life still goes on after a bankruptcy discharge.  Having filed for bankruptcy does not mean you can never rebuild the trust and confidence of creditors again.  You can always rebuild your credit ratings right after a bankruptcy.  You can even purchase a home after some time.  Here are suggestions on how to buy a house after a bankruptcy:

  1. Clean up your credit report.  Make sure your credit report is clean after a bankruptcy discharge.  Sometimes mistakes are made leaving behind a debt record when it should already be included in your bankruptcy discharge.  Contact your credit bureau immediately and inform them of the mistakes so they can make the necessary corrections.

  2. Rebuild your credit rating after a bankruptcy.  You can start with a secured credit card.  The credit limit given to you is the amount of deposit you have in your account.  Limit your spending to this amount, and your credit scores will surely improve.  Make sure also that you pay your bill on time.

    way is to live within your means.  Cut off unnecessary spending and refrain from impulsive buying.  It is best to pay off your full credit card bill every time to avoid incurring interest.

  3. Make some small installment loans.  These could be for a car, a student loan, or a salary loan.  Make it a habit to pay on time to avoid penalties.  Paying on time can help rebuild your credit scores.  This will form part of your new credit standing after a bankruptcy discharge.  Creditors will take it to mean that you learned your lessons, and you will be more careful in handling your finances making them gain renewed trust and confidence in you.

  4. Negotiate interest rates.  Even as early as a year after a bankruptcy, you can already purchase a house.  You have to accept the fact, however, that the interest rate they will charge you will be higher than the rest of the market as you are still considered a high risk for them.  This is understandable, but you should try to negotiate for a lower rate.  Show them your new credit standing showing your diligent efforts on your payments of your credit card and small loans.

  5. If you can afford it, make a substantial down payment so you will not be burdened with a very high monthly amortization which can definitely deplete you.  If it is still not the right time, do not force the issue as this can just mean making a mess again.

  6. Pay your monthly amortization on time.  This is very important to improve your credit standing after a bankruptcy.  Never let that experience happen again as it will definitely ruin your credibility even more.  Everyone deserves second chances, and when you have yours, make sure you don’t spoil it.  Trust is very important, and when you have rebuilt it after seven or ten years when your bankruptcy records have aged and been replaced with a good credit rating, you can have the same benefits as those who have not filed for bankruptcy.  Things will surely get back to normal.

Life after a bankruptcy discharge will never be the same as when you have not filed it. But this does not mean it will not go back to normal.  Knowing how to buy a house after a bankruptcy is easy, but building a good credit rating again takes time and a lot of effort.  This will pay off in time, so have the discipline so as not to experience the same thing occurring again.  A good future is still out there for those who struggle to change their ways especially in handling credit.


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