If you want to buy a house but have a bankruptcy in your past, you might think you have to wait 10 years before you get a loan. While there might be times people must wait this long, most people are able to qualify for a mortgage loan within just a few years after they file for bankruptcy. If you are in this position and want to find out if you might qualify for a loan, you could meet with a loan officer. When you meet with the loan officer, he or she is likely to ask you the following three questions before proceeding with your application.
When did you file bankruptcy and what branch did you use?
There are rules in place for mortgage lenders that relate to bankruptcies. The rules primarily state that a person who files bankruptcy must wait a certain number of years before becoming eligible for a loan. There are different time frames for different types of loan programs, and the time frames vary by the branch of bankruptcy a person used. You will need to tell the loan officer exactly when you filed, the branch you used, and the date of the discharge.
Did you go through a foreclosure?
If you not only filed bankruptcy but also went through a foreclosure of your home, you will most likely have to wait longer. A foreclosure is one of the most damaging types of activities you can have on your credit report. Lenders view this negatively, and laws state you must wait longer to get a mortgage if you went through a foreclosure.
What is your credit score?
Before the loan officer will work through your application and run your credit report, he or she might ask you about your credit score. To qualify for a loan, you may need to have a credit score that is a certain number or higher. These requirements vary, depending on the loan program you choose, but all loan programs have requirements when it comes to a person's credit score. A loan officer may ask this before proceeding just to avoid running your credit report if you definitely would not qualify for a loan based on this score.
These are three common questions loan officers ask when people want to apply for mortgages after filing for bankruptcy. If you would like to find out if you are eligible for a loan, contact a company that offers financial services and loans. For more information, talk with a company like Weyco Community Credit Union.