After you have filed for bankruptcy, it is only natural to feel that your future is tainted or marred by your financial mistakes. Boulder couples that have filed for bankruptcy often feel that there is little chance they will qualify to own a home in the near future. This is far from the truth—and bankruptcy does not have to prevent you from owning a home in Boulder or anywhere in Colorado.
Whether you have filed for Chapter 7, Chapter 13, or Chapter 11 makes no difference. They key to buying a home and qualifying for a home loan relies on your ability to become credit worthy. Bankruptcy is meant to give individuals and families a way to get out from under crushing debt and start over—building their credit and journeying down a path towards financial freedom.
Two years after filing for bankruptcy, your credit score should no longer be adversely affected by the filing. As long as you have met the criteria of your bankruptcy and have not accrued large amounts of unsecured debt in those two years, you should be able to qualify for a mortgage loan.
In order to buy a home and qualify for a home loan, you must find a creditor or mortgage company that is willing to work with you. They may run your credit through the Fair Isaacs credit score system to determine if you meet the requirements for obtaining a loan. If you have had good credit and paid your bills on-time—and not accrued more debt since your bankruptcy filing, then you may in fact qualify for a home loan.
The lower your FAIR Isaacs score is, however, the higher the interest rate you will pay. If you qualify for a higher interest rate home loan, there are several ways you can still protect your financial future. You can help your new home fit into your budget by choosing a lower priced home, one that is smaller, or put down a larger down payment. If necessary, you can even ask a family member to co-sign your mortgage loan.
There are also many mortgaging brokers and lenders in the Boulder and Denver metro areas that specialize in helping bankrupted families and individuals buy homes. Be sure to compare prices, interest rates, closing costs, and application fees before choosing a lender for your new home purchase. It is also wise to consult with an experienced financial advisor to help determine how much house you can realistically afford.
Contact Boulder Bankruptcy Attorneys
If you have questions regarding bankruptcy or how bankruptcy will affect your home purchasing options, call the Boulder bankruptcy attorneys at Goff & Goff, LLC today for a free consultation and review of your financial situation. Our Boulder bankruptcy lawyers can help you break free from debt and get back on track towards financial independence.