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Step 1
Obtain a copy of your credit report immediately. This is top priority and is key to cleaning up your credit after bankruptcy. Confirm that your credit report is accurate and up-to-date. Many times there can be issues showing on your credit report that have been resolved, but not yet cleared in your credit report. If you find discrepancies, call or write immediately and have them corrected.
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Step 2
Re-establish some sort of credit after bankruptcy. Establish new trade lines. Don't go overboard. Obtain a couple of credit cards with a $300 credit limit. Charge, then pay off regularly. Do not accumulate overdue balances. You want to show that you are able to manage credit wisely.
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Step 3
Save up for a down payment. If you can save enough money you might possibly be able to purchase sooner than the usual two years.
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Step 4
Prepare to pay a higher interest rate for awhile when you buy a home after bankruptcy. You can probably refinance your mortgage and get a lower interest rate after you have made 12 months of on-time payments.
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Step 5
Contact a reputable lender in your area. A reputable lender can walk you through the process. They are usually more than willing to help because they want your business when you buy a home after your bankruptcy experience is behind you.
Comments
mslthomas said
on 8/10/2008 Ed, you may want to check in your city for a down payment assistance program. Most cities have them and they will pay your downpayment and closing costs for you.
eddie06111 said
on 7/22/2008 did bankruptcy chapter7 finalized in feb 2008, sister says she will cosign for a condo, called a bank and they said the only way to do this is with 20% down, and without that if she cosign it would be an investment, is this just a never ending story we just never can buy right now? email is edhaghverdi@yahoo.com