It is a general conception that getting a refinance loan after filing a bankruptcy is difficult. But you can avail a home loan provided you pay the interest at a slightly higher rate. Usually, lenders do not prefer taking the risk of offering mortgages to somebody who has filed bankruptcy. But there's the subprime lenders who can offer you loans at higher rates of interest, sometimes even after five months of finalizing your bankruptcy.
Filing a bankruptcy case affects your credit status as it reflects your inability to pay down your debts. A Chapter 7 Bankruptcy stays in your credit document for at least 7 years whereas Chapter 13 Bankruptcy is featured in the document for 10 years. But this does not mean that you won't be getting credit - the only thing is that you won't qualify for a reasonable rate.
Usually, most lenders in the primary mortgage market will think about offering you the loan only after 2 years of filing for bankruptcy. But you need to be current on your bills in the work of this period. It is possible for you to to re-establish a better credit profile with a Chapter 13 bankruptcy, as it requires you to follow a repayment plan to become debt-free within 3 to 5 years. This is not simpler with a Chapter 7 bankruptcy because it allows for the discharge of all of your debts, & you don't must repay any part of your unpaid credit. But Chapter 13 bankruptcy helps you to show your creditworthiness while you continue to pay for a definite percentage of your debts including the mortgage.
One way to establish lovely credit within 2 years of declaring bankruptcy is to open a credit card account & make payments regularly. This will enable you to improve your credit score. You ought to also try to build up a savings account, since the more funds you have at hand, the better. You may also look for a secondary source of income so that you can pay down the debts, which are not discharged by bankruptcy. Maintaining a lovely credit profile thus becomes a necessity in case you need to refinance after bankruptcy.
When you have build up a fair credit history, try to look for mortgage quotes that are affordable, although you may get a slightly higher rate of interest on account of declaring bankruptcy. You ought to also think about the Annual Percentage Rate (APR) & the loan fees that come along with the refinance loan.
Refinancing after bankruptcy helps you to restore your credit profile. You can refinance your existing debts with a home equity loan that is often offered at a better rate than the other forms of credit. Use of such credit for refinancing will help you to maintain a lovely payment history. With a refinance loan after bankruptcy you can thus rebuild your credit history & this helps you to qualify for loan programs with lower rates & payments.
By: Rashid
Filing a bankruptcy case affects your credit status as it reflects your inability to pay down your debts. A Chapter 7 Bankruptcy stays in your credit document for at least 7 years whereas Chapter 13 Bankruptcy is featured in the document for 10 years. But this does not mean that you won't be getting credit - the only thing is that you won't qualify for a reasonable rate.
Usually, most lenders in the primary mortgage market will think about offering you the loan only after 2 years of filing for bankruptcy. But you need to be current on your bills in the work of this period. It is possible for you to to re-establish a better credit profile with a Chapter 13 bankruptcy, as it requires you to follow a repayment plan to become debt-free within 3 to 5 years. This is not simpler with a Chapter 7 bankruptcy because it allows for the discharge of all of your debts, & you don't must repay any part of your unpaid credit. But Chapter 13 bankruptcy helps you to show your creditworthiness while you continue to pay for a definite percentage of your debts including the mortgage.
One way to establish lovely credit within 2 years of declaring bankruptcy is to open a credit card account & make payments regularly. This will enable you to improve your credit score. You ought to also try to build up a savings account, since the more funds you have at hand, the better. You may also look for a secondary source of income so that you can pay down the debts, which are not discharged by bankruptcy. Maintaining a lovely credit profile thus becomes a necessity in case you need to refinance after bankruptcy.
When you have build up a fair credit history, try to look for mortgage quotes that are affordable, although you may get a slightly higher rate of interest on account of declaring bankruptcy. You ought to also think about the Annual Percentage Rate (APR) & the loan fees that come along with the refinance loan.
Refinancing after bankruptcy helps you to restore your credit profile. You can refinance your existing debts with a home equity loan that is often offered at a better rate than the other forms of credit. Use of such credit for refinancing will help you to maintain a lovely payment history. With a refinance loan after bankruptcy you can thus rebuild your credit history & this helps you to qualify for loan programs with lower rates & payments.
By: Rashid
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