Bankruptcy can create some setbacks. However, those setbacks don’t mean people can’t pursue specific financial goals. For many, one of those goals is becoming a homeowner.
Some lenders may be skeptical of those with a bankruptcy on their credit score. However, different lenders have different standards for what they’ll accept. Many also understand that life can throw people’s finances out of control, even for the most responsible consumers.
There may be a waiting period before you purchase
In Texas, you may have to wait two years before you can get an application approval. However, if they want to buy sooner rather than later, they could see if they meet the FHA loan standards. The government backs these types of loans, so if you end up defaulting on it, the government will pay lenders for any losses incurred.
Steps to take before sending in a mortgage application
Bankruptcy can damage a person’s credit score. But even damaged scores aren’t always accurate. To make sure your score is correct, you will want to:
- Look at your credit score.
- Check for errors (either made by a credit bureau, your landlord, service provider, etc).
- Contact the three major credit bureaus (those include Equifax, Trans Union and Experian).
- Request they make corrections to any mistakes reported.
All Texans can achieve the joy and independence that come with homeownership. Even if they have a bankruptcy on their credit report, that doesn’t have to stop them from attaining the American dream. For those looking to purchase a home after bankruptcy, an experienced and compassionate attorney can help you get the answers you need.