When you first made the decision to file for bankruptcy, you may have felt like your dreams of home ownership were over but that is not the case. Bankruptcy has given you a fresh start and if you move carefully into the future you will eventually be able to get mortgage and buy a home. Here are some tips to help you reach your goal of owning your own home.
Check your credit report
Get a copy of your credit report and make sure the debts that have been discharged are not still marked as open and overdue. They should be labeled "included in bankruptcy". If not, contact the credit agencies to correct the problem. You will probably need to provide them with a copy of your bankruptcy discharge letter. Check for any other errors as well. Once you know your credit report is correct, you can concentrate on rebuilding your credit score.
Make payments on time
Keep documentation proving that you are paying your rent, utilities and other monthly obligations on time. This proves you are taking your financial responsibilities seriously.
Save as much money as is possible towards a down payment
You will want to have a minimum of 3% down towards the purchase of your new home. The more you have down, the more likely you are to obtain the loan and the lower the interest rate you will pay.
Consider getting a secured credit card or an installment loan
If you get a secured credit card and pay it off in full each month, your credit score will raise quickly. The same is true for installment loans such as car loans or greeneasylife.com/StudentLoans student loans. Make sure you think about this carefully before you do it, however, and be sure you can afford the payments. It is critical that you be able to make your payments on time. Any nicks or bruises on your credit now will decrease your chances of receiving a mortgage.
Keep in mind that you will probably have to pay a higher interest rate than someone who hasn't had a recent bankruptcy and try to find a lending institution with mortgage programs for people who have suffered bankruptcy. There are many lenders that are happy to work with you to help you reach your goal if you have done your part and shown you are handling your finances responsibly.
If you live or are considering moving to Minnesota, why not check out the many Eden Prairie Homes for sale? Eden Prairie is an excellent place to live, work and raise a family, proven by the fact that Money Magazine has chosen Eden Prairie as one of the 10 Best Places to Live in America since 2006. There are numerous Eden Prairie homes available and by following these steps and planning carefully, you will be able to obtain financing for the home of your dreams even if you have filed bankruptcy.
Whether you're searching for kristinbolinske.com Eden Prairie homes for sale, or for those in other areas of the country, Kristin Bolinske can help. She'll help you work through your past financial issues so that you can look forward to spending the rest of your life in your new kristinbolinske.com Eden Prairie home - stress free!
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