Mortgage After Chapter 7 Bankruptcy
Sweetgrass Capital recognizes that purchasing a home, or refinancing an existing mortgage is a goal for many clients after they have completed their Chapter 7 Bankruptcy plan. Compared to other banks we have a department dedicated to helping borrowers obtain a mortgage after chapter 7 bankruptcy. We can offer you a home loan after Chapter 7 Bankruptcy as soon as 24 months after your discharge date. Other banks make you wait up to 4 years. Start your next chapter, and meet your mortgage goals today by connecting with us.
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 Getting A Mortgage After 7 Bankruptcy
To emphasize, here is a step-by-step rundown on how our home loan process works:
First off, you will speak with one of our Mortgage Consultants about your financial goals. Subsequently they will identify what you are looking to accomplish. The consultation provides you with the foundation you need, in order to pursue the appropriate home loan product. We address the most common stumbling blocks that our Chapter 7 Bankruptcy borrowers face on the front end.
At this point, you will complete the home loan application either online, on the phone, or in person. We are available to guide you through the application should any questions arise.
Following the application, we run a 3-in-1 credit report, and after careful review, we consult with you about a range of topics. This consultation will help us to verify accounts, as well as update any credit inaccuracies. This step is necessary to help identify common oversights that we see with our Chapter 7 Bankruptcy clients.
Afterward with the help of our processing specialists, we gather all the necessary information required to submit your home loan request to underwriting. As a result you have a partner during the information gathering process.
Additionally, our team will receive a list of conditions from the underwriter that request further clarification. In order to specifically address problems associated with your Chapter 7 case.
Clear to Close
From here, the final documentation is collected, and final insurance and escrows are arranged. Meanwhile a closing date is set, with your closing attorney or the appropriate escrow agent.
Lastly, you’ve done it! All final documents are reviewed, signed, witnessed, and notarized.
Stay in Touch
In any case, Swwetgrass Capital keeps in touch with the borrower through a yearly mortgage review. With this purpose in mind we will be sending quarterly newsletters, 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.