Your Residential Mortgage Application: After Bankruptcy

A residential mortgage application after bankruptcy requires a little more preparation and documentation than a standard mortgage application. If you had a bankruptcy in the past, then you need to allow more time for the loan process and underwriting of the loan.

Check Your Credit

Before applying, pull your own credit and check for errors. This will make the process faster since you will have your credit in order before applying. If you need to pay down some credit cards or pay off existing bills, do that ahead of time since it will take one to two months to show on your credit report.

Have All Documents

A bank will ask for all the required documents, such as W-2's, pay stubs and bank statements. In addition, have your bankruptcy discharge papers readily available.

Save for a Down Payment

A down payment will be necessary for any type of mortgage you apply for. Having a larger down payment will make your loan approval chances higher. After a bankruptcy, it is necessary to save more for a down payment in order to make the loan less risky for the bank and make the lender more willing to lend to you.

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