Getting a Mortgage after Bankruptcy
If you have filed bankruptcy, one of the things that might have upset you the most is losing your home. That is not surprising. After all, home ownership is considered the cornerstone of the American Dream. You may be wondering what it will take to get a mortgage after bankruptcy. Let’s take a look!
Understanding Your Time Frame
The good news is that you can get a mortgage after a bankruptcy discharge. The bad news is that it won’t happen quickly. Current guidelines require that you be two years from your bankruptcy discharge in order to qualify. If you also lost a home to foreclosure, that goes up to three years.
Cleaning Up Your Report
While you are waiting, there are a lot of things that you can do to improve your chances of qualifying. You can start by getting a copy of your credit report and making sure that everything is accurate. You will be surprised at how many of your creditors are reporting accounts that were included in your bankruptcy as being open and currently delinquent. You will need to dispute each of these accounts with the three credit bureaus. The credit bureaus do not communicate with each other, so just disputing with one is not sufficient.
Reestablishing Credit
Once your credit report is accurate, you will need to think about reestablishing credit. If all of your accounts were wiped out in your bankruptcy, then you will need to make sure that you reestablish at least four active accounts. Doing this as soon as possible is a good idea, because it gives you a chance to show a good credit history. Secured credit cards are a great place to start. After a while, you should also consider getting an unsecured card. For installment credit, a CD loan is a good place to start. Continue along a solid credit restoration plan, and you will qualify in no time!