Is it possible to buy a home after filing for bankruptcy in Alabama?

Ashville, AL—As Shirley MacLaine once said, “Anything is possible if you believe you deserve it.” While buying a home after filing for bankruptcy is possible, and it certainly can’t hurt if a person believes they deserve it, there are a few things that can be done to increase a person’s chances of getting approved for funding that is needed to purchase a home.

Read on to learn more about the steps that can be taken to raise a person’s chances of buying a home after having filed for bankruptcy in Alabama.

Work on raising their credit score.

One of the first things lenders look at before approving someone for funding to buy a home is their credit score. Although filing for bankruptcy will remain on a person’s credit report anywhere between seven to 10 years, that won’t necessarily stop them from raising their credit score.

To do this, individuals should consider doing the following:

Ensure all payments are made on time. Any open accounts an individual still has that are in good standing should be kept that way.
Obtain new lines of credit. Although an individual may not get approved for a standard credit card that provides them access to a line of credit, they can apply for secured credit cards or even credit builder loans, according to Bankrate.
Secure employment or keep a steady job. Another factor lenders will consider before approving someone for a loan is how much they are earning. Banks will look at whether an individual has stable employment to determine if they are going to be able to afford to pay back the loan or if they are a risk.

Save.

A large percentage of people today will be required to put money down when it comes time for them to purchase a home. The amount will differ, however, as it will depend on an individual’s credit score, who their lender is, and the price of their ideal home. Because most people don’t have a lump sum of cash lying around ready to go toward a down payment for a home, it will take some time for them to save.

While an individual works on rebuilding their credit, they will also want to figure out how much they are willing to spend on a home so they know the amount they will need to save.

Still unsure about filing for bankruptcy in Alabama?

If an individual is concerned about how filing for bankruptcy will affect their future endeavors, an Ashville, AL bankruptcy lawyer at Hill, Gossett, Kemp & Hufford, P.C. will help them understand the process along with the negative effects it may have on them in the future.

Hill, Gossett, Kemp & Hufford, P.C. is a reputable bankruptcy law firm with multiple locations in Alabama that can help an individual make an informed decision on whether they should file for bankruptcy or consider other options that will allow them to get a handle on their debt.

Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.

Hill, Gossett, Kemp & Hufford, P.C. can be reached at:

Moody Office

2603 Moody Parkway, Suite 200

Moody, Alabama 35004

Phone: (205) 640-2000

Website: www.hwhlawgroup.com

Leeds Office

7900 Parkway Drive

Leeds, AL 35094

Phone: (205) 699-5500

Springville Office

6441 U.S. Highway 11