Sometimes bad things happen to good people. Bankruptcy would be one of those things. Borrower’s options with traditional lenders are severely limited given the significant damage done to their credit scores. But there is good news for these borrowers. Prior bankruptcies are not deal-breakers for alternative lenders like Kokanee Mortgage. Here are 4 key points to keep in mind in preparing a mortgage application:
- The borrowers must be discharged from bankruptcy. It can be the day after discharge, but not while they’re still in bankruptcy.
- Multiple bankruptcies will be a challenge. Be prepared to explain to the lenders how this happened multiple times and how it won’t happen again.
- The key to a successful application with a prior bankruptcy is in the story. Be well prepared to explain how they got into the problem that lead to the bankruptcy and how this was a 1 time event.
- Solid income will be very important. Alternative lenders will place more emphasis than usual on income because they want reasonable chance for the borrower to succeed in picking up the pieces after bankruptcy.
A mortgage from an alternative lender like Kokanee Mortgage is often the first step for borrowers trying to rebuild their lives after bankruptcy. Arranging the right mortgage for a borrower after bankruptcy will a lot easier if you keep in mind these tips in mind.
The experienced underwriters at Kokanee Mortgage are always available to help you work through challenging situations like a prior bankruptcy.