buying a home after bankruptcy

Buying a home after bankruptcy

Every situation is different, but it is possible to buy a home after filing for bankruptcy. Filing for bankruptcy can stay on your credit report for up to 10 years, but by filing for bankruptcy you are in the process of fixing your credit issues. When a person files for bankruptcy in Baltimore they are taking the necessary steps to get their lives back on track financially.

If you keep accumulating debt that you cannot pay back, the problem is only going to continue to get worse. When you do end up filing for bankruptcy make sure to get a copy of your credit report from before you filed and after you filed for bankruptcy. Make sure to review these documents to ensure that there are no errors. This will help mortgage brokers evaluate your financial background and see if you can be approved for a traditional loan.

Steps you can take to ensure buying a home after bankruptcy is possible

There are many small but significant changes you can make to your lifestyle to make sure that buying a home is possible. The first thing you must do is be honest with yourself and look at your current financial situation. Do you have a plan in place to pay for any outstanding debt? Set a monthly budget for yourself, and eliminate any non-essential spending. It is vital that you get to a point where your income at least equals your monthly expenses. Your ultimate goal should be to get to a situation where you are managing to save a bit each month.

When you accumulate bills, make sure to pay them on time each month. This will help build a stronger credit report for yourself. Finally make sure to start saving. When you go to purchase a home, you should try to put 20% down on your mortgage. This helps you avoid what is called private mortgage insurance (PMI). PMI insurance is required for any borrower purchasing a home for less than the traditional 20% down.

While there is no standard for when you can apply for a mortgage on a home, the recommended timeline is to wait two years. This gives you enough time to repair your credit rating, and save money.

About the Law Offices of Nicholas J Del Pizzo

The burden of overwhelming debt can be too much for anyone to handle. That is where the Law Offices of Nicholas J Del Pizzo can help. At our Baltimore Law Office, our knowledge and experience in bankruptcy law can help you get the fresh start you need by wiping out your debts, reorganizing your finances, and saving your home. To learn more about filing for bankruptcy in Baltimore please contact The Law Offices of Nicholas J Del Pizzo.

Scroll to top