Time required to get a mortgage after bankruptcy


You are on the right track if you have been discharged from bankruptcy and want to get a mortgage again but don’t know how much time it will take or which steps to take to qualify for one.

We at MortgageKey will tell you after how much time you have to apply and what steps you need to take to qualify for a mortgage. Now, it is critical to know about every minor detail and work on them to increase your chances of getting a mortgage, as bankruptcy has affected your credit score and financial history, the factors lenders consider most.

After bankruptcy, when am I allowed to apply for a mortgage?

The time between filing for bankruptcy and applying for a mortgage is critical because, even if you are declared debt-free, the bankruptcy report will remain on your credit profile for at least 6 to 7 years and possibly longer, depending on the circumstances.

As the bankruptcy has adversely affected your credit report, ensure breathing room while seeking a mortgage again. Immediately applying for a mortgage after being discharged will increase your rejection chances, so before applying for a mortgage, always ask a mortgage advisor, specialist, or broker to help you find a mortgage that gives loans to bankrupts.

At least you need a minimum of three years to apply for a loan or mortgage again, as lenders will treat you like bankrupt people. In the meantime, improve your financial record and credit score to increase your chances of approval. After 5 to 6 years, you could get a suitable mortgage with reasonable interest rates. However, you might get a mortgage immediately after bankruptcy from some lenders. Still, they will offer it at high-interest rates with strict guidelines, so it’s better to wait for a mortgage for a few years rather than paying high-interest instalments.

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