One of the things that causes anxiety for people who are considering filing bankruptcy in Las Vegas is how long it will take for them to buy a home again. Homeownership is all but necessary for people who have families, so it’s an understandable issue for people who have lost their homes and need to discharge their deficiencies. To assuage any worries, here are three things you can do to hasten the day when you walk into your next home after bankruptcy.
- Save money for yourself. This is sage counsel for anyone who’s just out of bankruptcy. It’s much riskier to rely on credit cards for emergencies than before bankruptcy because it’ll be several years until you can file in Chapter 7 again, depending on how long your last case took. Because of this risk, it’s necessary to prepare for the worst before you can prepare to own a home again.
- Save money for the down payment. The more money you tuck away, the better. Reduce all extraneous purchases: dining out, drinking out (and drinking in), land lines, needless television channels, magazine subscriptions that you don’t read, and everything else that you don’t need. The more money you have stored away in your savings account, the more easily you will be able to convince a lender that you are not a credit risk because they don’t have to loan you as much money to pay for the house. You also want to avoid finding yourself in an underwater mortgage, which can be avoided by paying for as much of it as possible up front.
- Take steps to repair your credit score. Your previous bankruptcy will take a good chunk out of your credit score, worse if it deteriorated significantly before you filed bankruptcy. Lenders will not be excited to give you a loan at the prime rate. There are things you can do (while saving money above) that can improve your credit score after a bankruptcy. The obvious examples are paying on debts that weren’t discharged in your last bankruptcy, which are probably your student loans. Keep paying those, and your credit score will improve. If you’re paying on a discharged debt for some reason, bring the payment history as evidence that you made the payments.
If homeownership is important to your lifestyle or necessary due to your family size, there are steps you can take to get into another house after bankruptcy.
For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Haines & Krieger Las Vegas bankruptcy attorney for a free initial consultation. Call us at 1-702-880-5554 to set up your free consultation.