So, your credit has been less than perfect?
Does this mean that you can’t qualify for a mortgage? Not at all! You can still get a mortgage with bad credit. One message I always try to get across to people is that there is a solution for every problem. Some may take a little more work and patience, but if you commit to it, you can make it happen.
Make sure you know the facts
The single most important thing – contact Equifax and/or TransUnion and get a snapshot of what your credit looks like at this point in time. If you need to fix something, get incorrect information corrected, or re-establish credit, make a checklist and start working on it! Take a look at the pages under the Credit tab for more details.
Even after bankruptcy, as soon as you’ve been discharged, you should be applying for a secured credit card and start showing that you have committed to being an exemplary borrower. Don’t allow yourself to miss payments – ever! Consider automating at least your minimum payment to make sure this doesn’t happen. And don’t go crazy with the credit; I usually suggest that people use the card for things like gas or groceries, and that you pay it off in full each month. The key is, get some credit, use it wisely, and pay it off on or before the due date.
How quickly can you get a mortgage with bad credit?
After a period of bad credit, how quickly you can get a mortgage depends on the “full story” – things like your job stability, amount of your down payment, and what exactly your credit issues were. Each situation is unique.
We do have lenders who are willing to lend money as soon as one day after bankruptcy discharge. However, the interest rate charged is likely to be higher than bank rates, and there may be fees applicable, since there is more risk associated with lending to someone who is shown to have a poor track record of repaying lenders.
My recommendation: talk to me or another experienced mortgage specialist, so that you can put together a mortgage plan that is tailored to make the most of your unique situation.
Want to learn more?
If you want to read through some more detailed articles about Credit 101, click here.
And if you’re rebuilding your financial life after a bankruptcy or consumer proposal, click here to read other articles on my site under the search term “bankruptcy”.
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