Filing for bankruptcy can be complicated, and you may feel like your rights to own a house are forever gone. Fortunately, a debtor can buy a house, and you will not have to wait for long to buy a house after going through bankruptcy. Although, recovering and healing from the trauma that accompanies the bankruptcy may take longer, you can still become a homeowner.
If you are a resident of Livonia, MI and you are having issues with debt, the Livonia bankruptcy attorneys will be a great help. They will solve your debt-related problems right from the source. These lawyers have much experience in bankruptcy matters, and therefore you should not hesitate to contact them.
Are you wondering what needs to be done to own a home after bankruptcy? Here are seven things to do when buying a house.
Discharge Your Bankruptcy
Discharging your liability is the first thing you need to do. Creditors can make you lose sleep, and therefore you need to set yourself free by prohibiting them from taking any action of collection against your bankruptcy forgiven debts. Bankruptcy lawyers can help with this.
Rebuild Your Credit
After you have discharged the debt, you should embark on rebuilding your credit. Though it may be difficult and take a while, it is a critical step in being able to buy a house after bankruptcy.
Pay Bills On Time
Letting your bills accumulate or paying them past due is a great risk after filing for bankruptcy. This will negatively affect your credit score and must be avoided at all costs. Lenders will investigate your financial status, and if it’s found with any issues you might have more difficulty purchasing a home.
Right Time
Patience always pays, and it would be wise for you to wait awhile to purchase a home after going through bankruptcy. This will increase your chances of getting better mortgage terms and a favorable interest rate. Therefore, you should give yourself at least two years.
Affordability
Another critical tip when buying a house after bankruptcy, is to not overestimate the kind of home you want to purchase. The bankruptcy attorney will advise against buying a house that is out of range. You can always move on to a bigger house after your financial situation has improved, and you should handle what you can safely.
Down Payment
Being keen on your spending is a key factor after you have filed for bankruptcy. Therefore, It would help if you worked on saving some money for a down payment. This money will come in handy in the house buying process.
Lenders Comparison
There are many willing lenders ready to fund house buyers. However, it would be wise of you to think about each one of them before settling on one. This will help you make an informed decision based on the requirements, such as interest rates and minimum credit scores.
The steps discussed above are the best you can follow if you want to own a house after bankruptcy. If you have filed for bankruptcy near Livonia, MI, consider the services of Foley Law Offices, and get help from their qualified bankruptcy attorneys so you can be guided accordingly. Contact us today for more information about how we can best serve you.