I get where you’re coming from, but I’m not totally convinced old bankruptcies are always a non-issue. When I started looking into mortgages, a couple lenders flat-out told me that even if the bankruptcy was ancient history, it still “tells a story” about how you handle money long-term. Maybe it’s not as big a deal as a recent late payment, but I feel like some underwriters just see the word “bankruptcy” and get spooked, no matter how much time has passed. It’s almost like they want to find something to worry about, even if your recent credit is spotless. Just my two cents...
It’s almost like they want to find something to worry about, even if your recent credit is spotless. Just my two cents...
I get what you’re saying, but in my experience, once enough time has passed and you’ve rebuilt your credit, most lenders care way more about what you’ve done lately. I had a bankruptcy on my record from over a decade ago, and when I bought my last house, the lender barely blinked at it. They were way more interested in my recent payment history and income. I’m not saying it’s a total non-issue, but I wouldn’t put it on the same level as a recent late payment or default. Sometimes I think it depends on the lender’s mood that day...
Sometimes I think it depends on the lender’s mood that day...
Ha, yeah, that’s not far off. Here’s how I usually look at it: if you’re applying for a mortgage and your bankruptcy is ancient history, most lenders are more interested in your recent track record. Step one, make sure your last few years are squeaky clean—no missed payments, no new debt drama. Step two, have all your docs ready to show stable income. Step three, be prepared for some random questions, because sometimes they just want to poke around. But honestly, a 10-year-old bankruptcy is like last season’s fashion—most folks aren’t looking that far back.
Title: Old Bankruptcies vs. Recent Ones—Lender Logic?
- Lenders definitely care more about what you’ve done lately than what happened a decade ago. I’ve seen this firsthand when I refinanced—my friend had a bankruptcy from 12 years back, and the underwriter barely blinked at it.
- That said, some lenders have hard rules (like “no bankruptcies in the last 7 years”) while others are more flexible if your credit’s bounced back strong.
- Documentation is everything. If you can show stable income and a solid payment history since the bankruptcy, you’re in a much better spot.
- Credit score matters, but they’ll also look at your debt-to-income ratio and how much you’re putting down. Sometimes a bigger down payment can help offset old credit issues.
I do wonder, though—has anyone run into a lender who still fixates on really old stuff? I’ve heard stories about certain banks digging up ancient history just because it’s technically still on the record. Maybe it depends on the loan type or if you’re going for something like a jumbo loan?
Curious if anyone’s had a lender ask for extra explanations about something that’s way past the usual reporting window. Sometimes it feels like they’re just looking for a reason to say no...
Honestly, I’ve had underwriters ask about stuff I barely remembered myself—like a late payment from the Bush administration. But in my experience, most lenders are way more interested in what you’ve done lately. If your credit’s solid now and you can show you’ve learned from the past, you’re usually fine. Some banks just love paperwork for the sake of paperwork, but that’s more the exception than the rule. Hang in there—sometimes it just feels like a test of patience more than anything else.
