Totally agree—cash can open doors credit alone can't. When I bought after my BK, lenders were hesitant at first, but a solid down payment shifted the conversation fast. Credit matters, sure, but money talks louder in real estate...especially post-bankruptcy. Did you notice better loan terms too?
Interesting perspective, hadn't thought about loan terms improving with a bigger down payment after bankruptcy. I'm still early in the process and trying to figure out if it's smarter to wait until my credit rebounds more or just save aggressively for a larger down payment now. Did you find lenders were more flexible overall once they saw you had cash ready, or was it still a bit of an uphill battle?
"Did you find lenders were more flexible overall once they saw you had cash ready, or was it still a bit of an uphill battle?"
It definitely helps to have cash in hand, no doubt. But honestly, bankruptcy makes lenders nervous regardless. Even with a bigger down payment, expect them to scrutinize your finances pretty closely. I went through something similar about five years ago—had a solid chunk saved up but still ran into hesitation from several banks.
The good news is that having a larger down payment did open doors with smaller local lenders and credit unions. They seemed more willing to work with me once they saw I was serious and had skin in the game. Bigger banks... eh, not so much. They mostly just stuck to their strict guidelines.
If you're early in the process, I'd suggest balancing things out: build up savings steadily but also keep working on your credit score. You'll be glad you did when you're sitting across from a skeptical loan officer...trust me on that one.
"The good news is that having a larger down payment did open doors with smaller local lenders and credit unions."
True, but honestly, even smaller lenders can be pretty cautious after bankruptcy. When I went through this, I found that waiting a bit longer to rebuild my credit score actually made a bigger difference than just having extra cash upfront. Patience isn't fun, but sometimes it's the smarter move in the long run...just my two cents.
Good points all around. From my experience:
- Bigger down payments definitely help open doors, but they're not a magic fix after bankruptcy.
- Waiting a bit to rebuild credit can save you thousands in interest down the road—trust me, learned that one the hard way.
- Smaller lenders are great, but they're still cautious. They might give you a shot, but expect higher rates at first.
- Bottom line: patience sucks, but it pays off big-time later.
Just speaking from experience here...your mileage may vary.
