Can i get a Mortgage after Bankruptcy

Previously, bankruptcy was a near death sentences as far as credit history was concerned, and haunted a person for a good 7 to 10 years. Nowadays, however, while it is still unfortunate, it can also be viewed as a chance to make a fresh financial start. People might think bankruptcy might spell the end of their dream to own a house, but if you put in some effort over a period of two to three years, it is more than possible to qualify for a competitive mortgage. Here are some tips and guidelines on how to get a mortgage after bankruptcy.

• Following bankruptcy discharge, scrutinize your credit report carefully. It is essential to find out if it is all accurate, and if all debts have been fully discharged and closed, as anything outstanding will work against you and keep you from establishing a good credit record. Certain creditors might still be reporting collections, and these could damage your score. Focus on maintaining a clean credit score in the future – do not make late payments, or accumulate judgments, collections, or liens, as this will convince lenders that you are still unreliable.
• Ensure that your foreclosure date is accurately recorded on official records such as property tax records, property deeds, court foreclosure actions, and of course your credit report. Lenders will consider approving your loan only after three years have elapsed since the foreclosure date.
• If there are any other installment loans (such as student loans) that endure through and after the bankruptcy, keep them open and make sure you pay them promptly.
• Consider applying for a secured credit card, which will report to a prominent credit reporting bureau – for this, you will keep an amount of your choice in an account, and be provided as much in credit limit. Use this for small purchases, and pay all the bills that come in full and on time.
• Look into obtaining a high-interest rate unsecured credit card, and then avoid the high interest rate completely by paying any bills in full, safely within the grace period. Do not carry a balance that is more that 30% of your credit limit.
• Next time you consider a large purchase, like a car, get a loan for it, even if the interest rate is soaring (but make sure the amount of the purchase is low, so you can afford it with ease). Make payments on time, and make larger payments to pay the loan off faster, to prove that you are more responsible now, as far as debt is concerned.
• Keep an eye out for zombie debts, and check your credit report frequently to spot these, and any other errors or inaccuracies. Zombie debts are old debts that have been reopened. If a particular debt is more than 7 years old, contact a good credit counseling agency, and get their help on how to deal with it and keep it from damaging your credit score.
• Once the period of 2-3 years has elapsed, and you have managed to establish a clean credit history, apply for a VA or FHA mortgage. Lenders may question you in regards to the bankruptcy, so be prepared to answer questions regarding your financial situation, and outline your plans to prevent bankruptcy and foreclosure from happening in the future.