If you lost your last Tennessee home to foreclosure, it can be significantly harder to get a mortgage. Getting a home loan can also be difficult if you have a bankruptcy on your credit report. Fortunately, it may still be possible to get a home loan even if you have made significant financial mistakes in the past.
There will likely be a minimum waiting period
You will typically need to wait at least a year after filing for bankruptcy before you’re eligible for a home loan. However, it may be up to four years before you will be approved for a mortgage depending on the type of bankruptcy you sought and the type of loan that you want. As a general rule, it will be three years after a foreclosure before most lenders will seriously consider your next mortgage application.
Do you meet credit and income standards?
Most lenders will have credit, income and other requirements that you must meet even if you don’t have a foreclosure or bankruptcy on your credit report. In most cases, you’ll need a score of at least 640 to get something close to a lender’s advertised interest rate or other terms. Furthermore, you’ll need to verify that you are employed and have made a steady income over the past several months. This is generally done by providing your prospective lender with tax documents or pay stubs.
If you have a serious blemish on your credit report, you can be sure that a lender will see it. However, depending on how long ago a foreclosure or bankruptcy occurred, it may not impede your ability to buy a home. In most cases, lenders will be happy to discuss your loan options before submitting an application.