Posts

How to Buy Your Ocean Edge Condo After Bankruptcy

How to Buy Your Ocean Edge Condo After Bankruptcy

Bankruptcy can feel like a dirty little secret that no one wants to talk about because there was a social stigma associated with it. However, life does go on after bankruptcy. Approximately 800,000 people every year have to file for bankruptcy for one reason or another, so it is not as uncommon as one might imagine. At one time, a person that had to file for bankruptcy was thought of as a person that was irresponsible with their spending, and deserved to have to file. The Great Recession opened a lot of peoples eyes to the reasons that people file for bankruptcy, and eased the stigma of bankruptcy.

If you have found yourself in this situation, you may be wondering how long you have to wait before you can buy your Ocean Edge condo after bankruptcy. Although filing for bankruptcy may put a hold on purchasing your Ocean Edge condo, it doesn’t have to stop you from your dream of owning your own condo for long. Here is our guide to the different types of bankruptcy and how soon you can go ahead and purchase a property again.

Types of Bankruptcy

What is bankruptcy? Bankruptcy is an option for many people for a variety of reasons. Filing for bankruptcy can be a way for someone to eliminate a person’s debts entirely or a way for a person to set up a plan to pay off their debts. There are some types of bankruptcy that are easier to recover from than others. Chapter 13 and Chapter 7 are the two most common personal bankruptcy types. Chapter 7 eliminates all of your debt, while Chapter 13 means that you need to repay your debt that has accumulated within a period of time (usually 3 to 5 years).

Since Chapter 7 eliminates your debt, leaving you with a clean slate, it is easier to recover from and you will be able to get a mortgage quicker than with Chapter 13. With Chapter 7, your income to debt ratio is appealing because there is no debt, which is appealing to a bank or mortgage lender. In order to get a FHA loan before you are finished paying off your debt with a Chapter 13 loan, you could apply for a FHA loan if you meet one of two criteria. Either 12 months of payments must be made towards your plan or the court approves your request to purchase a house with a FHA loan.

Types of Bankruptcy

Debt and Credit

Filing for bankruptcy will put a dent in your credit score, there’s no way of getting around it. Typically when a person files for bankruptcy, they will find themselves with a credit score of about 607. Since you will then have a less than desirable credit score for a mortgage, the interest rate you are charged will be higher than the rate for a borrower with a higher credit score if you do get a mortgage product. A higher interest rate means paying more money per month towards your mortgage, which is not going towards paying off your Ocean Edge condo.

How do you fix your credit score so that you can get a lower interest rate so you can purchase your Ocean Edge condo after bankruptcy? The only way you can fix your credit score after bankruptcy is by building up your credit the old fashioned way. Open a credit card and start building your credit by making on time payments on the card. Be responsible with your spending and set little reminders so that bills are not missed, but paid on time or a little early. For more tips on how to build up your credit score, check out our blog, “Credit Score in the Toilet? Fix it before You Buy Your Ocean Edge Condo.”

Credit Debt

When Can You Buy Your Condo

Figuring out when the clock officially starts on your bankruptcy can be confusing. You want to know when you can put this behind you, and finally purchase your Ocean Edge Condo after bankruptcy. Some people believe that it starts when you initially file your paperwork and others believe that it is the discharge date. What do you believe? What date do lenders look at when you are trying to buy a home of your own? The answer is that the discharge date is the date that is important, not the bankruptcy filing date. Although there is no definite waiting period, you can expect to have to wait about a year and a half to two years before applying for a mortgage after bankruptcy.

Different lenders and loan products require different waiting periods before you are eligible for a mortgage. USDA Rural Development products require Chapter 7 filers to wait three years after discharge, and only one year for Chapter 13. VA (Veterans Administration) and FHA loan products typically require two years after discharge, but you could have to wait up to four years to be eligible for a conventional mortgage after bankruptcy discharge. Although this can feel like a long time to wait to buy your Ocean Edge condo after bankruptcy, you should use this time wisely and build up your credit. Building up your credit will help you when you are able to purchase your condo after bankruptcy.

When can you buy your Ocean Edge condo

How to Purchase Your Ocean Edge Condo After Bankruptcy

Filing for bankruptcy can be a blow to your credit score and ability to get a mortgage for some time, but it should not be a blow to your ego. So many Americans find themselves in the position of having to file for bankruptcy, as we saw in the Great Recession and it is nothing to be ashamed of. Take the time that is required before you are able to purchase your dream condo to build back up your credit and savings, before purchasing your home. Taking care of your affairs during your waiting period will set you up for success when you do purchase your Ocean Edge condo after bankruptcy. Contact the professionals at Leighton Realty when you are ready to buy your Ocean Edge condo after bankruptcy. Michael Leighton has been the #1 Agent at Ocean Edge since 2004 and the #1 Agent for Brewster since 2007.

Buying Your Retirement Condo at Ocean Edge Before You Retire

Buying Your Retirement Condo at Ocean Edge Before You Retire

It may seem early, but many people decide to buy a retirement condo 10 years before they actually retire. And what better place to retire than Ocean Edge! Ocean Edge is located in the town of Brewster, which is centrally located on Cape Cod. Since it is a condo, you do not have to take care of the grounds which is a huge bonus of condo living. In addition to the grounds maintenance, Ocean Edge has a number of appealing amenities available to owners that buy a club membership. There is an award winning golf course, swimming pools, fitness centers and much more. Check out our blog, “5 Reasons to Buy a Condo at Ocean Edge” to see why buying your retirement condo at Ocean Edge is a wise choice.

The small town feel of the Ocean Edge community of owners is another benefit of owning an Ocean Edge condo. Once you have made the decision of where you would like to retire, planning out the purchase of your property is the next step. It is never too soon to make this important decision. If you buy your retirement condo at Ocean Edge now before you retire, there are a number of benefits that you can take advantage of that would not be available to you if you decided to wait. Here are the reasons why you should buy a retirement condo at Ocean Edge now instead of waiting!

Mortgage Approval

When you are applying for a mortgage, as many people have to do when purchasing a property, your debt to income is assessed. It would be much easier to be approved for a mortgage while you are working verses when you have already retired and are no longer working. Your income to debt ratio is a big factor which would determine the size of the loan you would be eligible for. If you do not have reliable income, it can impact your ability to obtain a mortgage.

Another benefit of applying for that mortgage on your retirement condo at Ocean Edge is the ability to chip away at your loan before you stop working. The weight of a mortgage when retired is a big burden. Lessen your stress load by getting a head start on paying off your mortgage while you still have the reliable income coming in from your job instead of waiting. Things come up, and although your mortgage is a known expense that shouldn’t change during the life of your loan (unless you choose a variable rate mortgage), it is still an expense. If you can chip away at that mortgage, it is always in your best interest.

mortgage approval for an ocean edge condo

Fixing Up Your Retirement Property

When buying your retirement condo at Ocean Edge, you may have some renovations in mind. Now is the time when you’re working and have that income coming in to do these adjustments to the property so it is all ready for your retirement. If your condo has a spiral staircase, now would be the time to convert it to a straight staircase so it is easier to use as you get older. This will also save you the hassle of living through these renovations when you have retired. It is your second property, so you do not have to be there living in a construction site.

When you buy any property, you never know what you might uncover. Problems pop up from time to time, so you may as well find out now when you have the income coming in so that you can properly deal with any problems you might uncover. Plumbing issues, moisture issues, electrical or structural problems can all set you back significantly. If you are unable to pay to fix these issues out of pocket, at least you would be in a better position financially to secure a loan to cover the repairs when you have your job verses when you are not working.

Portfolio Boost

Owning a second home has its perks. You could use it for personal vacations, treat your family and friends or turn it into an income property! Renting your retirement condo at Ocean Edge could provide you with the money to take care of some of the burden of covering a second mortgage and the additional costs associated with owning that condo, or give you some extra pocket cash. If you are considering renting your retirement condo at Ocean Edge, check out our blog, “4 Reasons You Should Rent Your Home with a Cape Cod Rental Agency.” Renting your condo through an agency in the area such as Leighton Rentals will give you the stress free renting experience you want without the stress of managing the rental yourself.

make an ocean edge condo part of your portfolio

Planning for the Long Term

Owning your retirement home before you retire gives you an idea of what your living expenses will be once you live in the home. If you do decide to rent out your condo while you are not living there, you will have an idea of what the utilities will come to because your tenants will be essentially living there as you will one day. Knowing your expenses before retirement is a huge advantage and will prepare you better for retired living.

Buying Your Retirement Condo at Ocean Edge

Proper planning for your retirement will ensure that you are living within your means and limit the amount of unknowns making the transition less stressful. The last thing you want is to have to pick up a part time job to cover your expenses once you finally retire. Purchasing your retirement condo at Ocean Edge now instead of waiting until after you retire will only set you up to succeed if you can afford to carry the two mortgages at the same time. If you are intimidated by the idea of carrying two mortgages, meet with Leighton Rentals to discuss the idea of renting your property while you are not using it. To find your perfect retirement condo at Ocean Edge, contact Leighton Realty. Michael Leighton has been the #1 Agent at Ocean Edge since 2004 and the #1 Agent in Brewster since 2007. Let Michael and his team help you find the perfect property for your retirement.