Getting BC Mortgages Post-Bankruptcy is Possible!

Bankruptcy happens. Sometimes good people get put into bad situations and it’s fortunate for all of us that the option of filing for bankruptcy exists. There is life after filing and hope for people who are on the rebuilding side of bankruptcy.

Mortgage How Soon After Bankruptcy?

Typically lenders are looking to see that a home buyer has had two solid years after filing without defaults, and one additional year of rebuilding credit. That’s a total of just three years after filing that the CMHC will look at approving a high-ratio mortgage (down payment of 20% or less).

What do the Bank’s Consider when Reviewing My Application?

As with and credit application, your credit score will factor into the decision, but with post-mortgage applications, the criteria are much more complex. One of the things that is looked at is the source of the current down payment. Money that has been earned, accumulated, saved and then will be used for a down payment is most valuable because it shows that the applicant has the ability to budget effectively and achieve financial goals. Gifted money, on the other hand, is not valued as highly. In the case of gifts, the bank is relying heavily on the source’s ability and willingness to continue to support the applicant if his or her financial situation does not improve. In that case, it is more advisable to bring that person on to the mortgage as a co-signer, thereby granting the bank assurance that the gift giver is willing to continue to back the applicant. Other factors considered can include job stability, the length of time since the bankruptcy and the reason(s) that the applicant filed for bankruptcy protection in the first place.

Getting Started with a BC Mortgage Post-Bankruptcy Application

The first step in applying for BC Mortgages Post-Bankruptcy should be to find out just what kinds of hurdles you’re up against, and if all of them are even correct. Frequently credit reports contain errors that can be damaging to people’s histories and cost them significant amounts of money through increased interest rates. To obtain your free report, contact Equifax or Transunion.

The free reports, while useful, will not contain your credit score but will contain notes about your history. Sometimes issues that were settled before or during a bankruptcy with creditors are neglected to be removed from the record afterwards. Ensuring that the credit report is accurate and does not contain any unnecessary notes against you can significantly increase your overall credit score.

The next step is to get in touch with an experienced professional who can put you in touch with a wide variety of options including both traditional and non-traditional lenders. To speak with one directly, click here:

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