Even though the great recession was several years ago now, many people in Mississippi continue to face the consequences of the financial problems they experienced during that event. Part of this is because the after-effects lasted for a while. A lot of consumers tried to make things work during the hardest part of the recession only to end up filing for bankruptcy or having a home foreclosed on by a bank a few years down the road.
For people in this situation now wanting to buy a home again, there may be good news. The Mortgage Reports suggests that consumers may even be able to get a new home loan in as little as two years after a Chapter 13 or a Chapter 7 bankruptcy. The length of time that people need to wait can range in part due to the type of loan that they wish to obtain.
Another factor that may impact how long someone should wait after completing a bankruptcy before applying for a new mortgage is the interest rate they want to receive. Smart Asset explains that people who wait the minimum amount of time may be more apt to pay higher interest rates than those who choose to let more time elapse between their bankruptcy and their new mortgage application.
Consumers are encouraged to show their ability to manage money well in part by saving up a sizeable down payment. It should also be expected that a potential lender may want to inquire about the nature of the circumstances that led to the bankruptcy and what has changed in the applicant’s life since then.