Can A Gambler Get A Mortgage?
Question: I know that I have no business asking this, however I recently had my home foreclosed and am just now getting back on track. I had a bankruptcy a year ago as well. I can afford a home with my salary, however I am a gambler but have now gotten back on track. I have nothing to put down and because of my past no one will look at me for financing. How can I get a mortgage?
Answer: You should ask, it’s a fair question. Lenders are absolutely squeamish when they hear such terms as bankruptcy, foreclosure and recently. Such things are now part of your history — but they do not have to be part of your future.
You need to re-build credit. Instead of thinking about a home purchase now, think instead of the least-expensive rental you can find. Put away money and build-up your savings. Avoid luxuries and frills. Pay all bills in full and before they are do to re-construct your credit.
Lenders want to see a history of good credit. Because of the foreclosure and bankruptcy it will likely take four or five years to re-build your credit standing. By then, lenders should be willing to look at your financial situation.
Lastly, you say you had a gambling problem. It’s not easy to make such an admission and you should be congratulated for seeing a difficulty and doing something about it. That takes courage and strength. It’s important to explain to lenders what happened and why — and to also explain how you’re changing both your life and your finances. Given that no borrower is perfect, lenders will appreciate your candor.
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Syndicated originally by Content That Works and posted with permission.
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