4 Key Points for Mortgage After Bankruptcy
Sometimes bad things happen to good people. Bankruptcy can be one of those things.
And when these borrowers seek out a mortgage after bankruptcy, that can prove challenging.
If this type of borrower seeks out a traditional lender, their options are often severely limited. This is due to the damage done to their credit scores. However, the good news is that a prior bankruptcy is generally not a deal breaker for an alternative lender like Kokanee Mortgage.
Four key points to keep in mind while preparing an application for a mortgage after bankruptcy:
- The borrowers must first be discharged from bankruptcy. The application can literally be filed the next day but not while they’re still in bankruptcy.
- Multiple bankruptcies will be a challenge. Borrowers must be prepared to thoroughly explain to lenders how each bankruptcy occurred and how it won’t happen again.
- Borrowers must be well prepared to explain the story. They’ll need to detail how they got into the problem that lead to the bankruptcy and offer reasonable assurance that it was a one-time only event.
- The ability to demonstrate a solid income will be very important. Alternative lenders will place more emphasis on income. They will want it to be clearly illustrated that the borrower is able to fulfill their financial obligations.
A mortgage from an alternative lender like Kokanee Mortgage is often the first step for a borrower trying to rebuild their lives after bankruptcy. Arranging the right solution for a mortgage after bankruptcy will be a lot easier if the 4 key points are all adequately addressed.
The experienced underwriters at Kokanee Mortgage are always available to help you work through challenging situations like those of a prior bankruptcy. Our expertise and knowledge allow us to craft lending solutions for borrowers, regardless of issue or circumstance.