How will a bankruptcy impact my ability to qualify for a mortgage?
A – There are a number of lenders that will provide you a mortgage even following the first day that you are discharged from this bankruptcy. This isn’t to say that the rate you will be charged will be the same as what you would find at one of the major lending institutions. Make sure that if you have been involved in a bankruptcy in the past, that you immediately try and obtain a secured credit card or line of credit in order to start rebuilding your credit history. In addition, it is advisable to maintain stable employment and to be ready to commit approx. 15% of the purchase price for a down payment. If you would rather wait to apply with one of the primary lending institutions, then you will need to have at least 1 year of credit history and 1 year since your discharged date. Depending on the lender, they may want to see a 2 year credit history and 2 years since your discharged date. Expect to come up with 10% of the purchase price as your down payment in this scenario.
