Life after bankruptcy is a tough time for many California consumers, so much so that they may have to forego buying a new home because they can’t afford one. However, there are a few things people might need to consider when it comes to buying a home post-bankruptcy that could make the process easier.
Can you still buy a house after Chapter 7 bankruptcy?
If you have filed for bankruptcy, keep these suggestions in mind for your life after bankruptcy if you want to buy a house:
- Be prepared to wait quite a while.
- Remember that your bankruptcy will affect your credit and ability to borrow in the future.
- Make sure you understand the foreclosure process and what steps you need to take if it looks like your home might be sold at auction.
Credit score
After completing a Chapter 7 bankruptcy, people want to get their lives back on track. One of the steps in this process, for many, is buying a house. Buying a house can be daunting, but it can be done successfully. Here are tips to help you:
- Get Pre-Approved. Before you even begin looking for houses, make sure you have pre-approved for loans from your bank and other lenders. This saves time and money in the long run.
- Perform Your Own Financial Analysis. Before making offers on houses, perform your financial analysis to ensure that the purchase is financially feasible for you. This will help avoid pitfalls down the road, such as overpaying for a property or obtaining financing that is not suitable for your situation.
- Make an Offer that is Appropriate for the Property and Situation. When making an offer on a property, make sure it is appropriate, given the condition of the property and your budget constraints. Be willing to walk away if negotiations go poorly or the seller doesn’t meet your expectations in terms of price or sale.
Options for home purchase lending
If you are still looking for a lender willing to work with you or if you are not eligible for any government programs, other options are available. You can try getting pre-approved through reputable online services. These services will allow you to compare different loans and rates before deciding which is best for you.