Getting Mortgage After Bankruptcy is POSSIBLE
Sweetgrass Capital recognizes that buying a home or refinancing an existing mortgage is a goal for many clients after they have filed a Chapter 13 Bankruptcy plan. Unlike other banks, we have a department dedicated to helping borrowers get a mortgage after bankruptcy. Our Chapter 13 Bankruptcy Division offers mortgages as soon as 1 day after a completed Chapter 13 Bankruptcy plan. We also offer mortgage loans during your Chapter 13 bankruptcy plan. Our clients have reviewed us as one of the top bankruptcy mortgage companies in the Nation because we provide valuable guidance when it comes to buying or refinancing a house after bankruptcy.
Speak with one of our company’s Mortgage Consultants about getting a mortgage after bankruptcy. Set up your FREE consultation, call us at (843) 277-9304.
The Process for Refinancing or Buying a House After Bankruptcy
Our team has developed extensive expertise helping thousands of clients after their bankruptcy. Below is our proven step-by-step process for refinancing or buying a house after a bankruptcy.
First, you will speak with one of our Mortgage Consultants about your goals. The consultation provides you with the foundation you need to pursue the appropriate home loan product. We save you time by addressing the most common stumbling blocks that our Bankruptcy borrowers face when buying a house after bankruptcy.
Then, we run your free 3-in-1 credit report. After careful review, we will consult with you about a range of topics from verification of accounts, to updating credit inaccuracies that are common with our Bankruptcy clients. If your credit score needs improving we provide a clear path to improving your score.
Next, you will complete our home loan application either online, on the phone, or in person. Our team is available to guide you through the application should any questions arise.
With the help of our processing specialists, we gather all the necessary information required to submit the home loan request to underwriting.
In some instances, our mortgage consultants will receive a list of conditions from the underwriter that request further clarification specifically to address problems associated with our Bankruptcy clients. We are adept at solving problems you might not be able to get past with other lenders like liens on titles, or other complex income issues.
Clear to Close
From here we collect the final documentation needed to close your mortgage loan. Your closing attorney or the appropriate escrow agent will arrange the final insurance and escrows.
You’ve done it! Now we review, witness, sign and notarize the final documents.
Stay in Touch
Lastly, we will keep in touch with you through a yearly mortgage review and personalized updates about mortgage trends.
Homebuyers who file Chapter 7, and essentially erase most of their debts, are seen as bigger liabilities. You’ll find you have longer waiting periods compared with those who file Chapter 13 and have completed timely payments. Expect to wait two years following Chapter 7 discharge and one year of on-time Chapter 13 payments for FHA or VA loans, three years or one year respectively for USDA loans and four years or two years for conventional lenders.
Filing bankruptcy, all by itself, will seriously drive your credit score down. Thankfully, you can begin to rebuild immediately. Work with a mortgage consultant as soon as possible to fix your credit reports before you apply for a new loan. Because we focus exclusively on the residential loan market, we know many tricks and helpful tips for cleaning up your credit, including the most effective ways of inspecting your reports and fixing inaccuracies.
While you may qualify for certain low down payment options post-bankruptcy, with traditional lenders, a larger down payment can mean the difference between a rejection and an approval.
Essentially, once you’re eligible to apply for a home loan, you must still meet the requirements other borrowers have to face, which can be difficult post-bankruptcy for many reasons. Work with residential mortgage specialists to increase your chances of success.
Learn more about common lending programs, like FHA loans. Contact us to speak with a Sweetgrass Capital consultant.