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Step 1
Order your credit report from all three of the main credit bureaus, Experian, Equifax and Transunion. When you apply for a mortgage, lenders will pull all three credit reports, or what is known as a Tri-Merge report, which includes information from all three.
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Step 2
Examine your report carefully and highlight each and every negative remark on your report. Draft letters to the credit bureaus asking that they remove each item. By law, they must verify each item within 30 days. Statistically, only 60 percent of companies respond to verification requests within 30 days. Those that don't get removed from your report. Do not request more than 4 removals per letter. Even though you've filed for bankruptcy, all the debt you discharged will remain on your report.
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Step 3
Start saving money. You will almost definetely need a minimum of a 10 percent down payment. If you want to buy a home valued at $150,000, you will need $15,000. Start saving everything you can, in a high interest rate savings account. Pick up some side jobs, or a second job, to speed up your savings. Cut expenses where you can. If you can save $100 a week, you will have enough in 2 1/2 years.
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Step 4
Set up automatic payments on all bills, so as not to forget and pay one late. This is especially true for loans, such as car loans, student loans, credit cards and those that report to credit bureaus. If you must pay late one month, pay before it becomes 30 days late, as that is when they report to credit bureaus.
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Step 5
Pay off all your debt or at least pay it down as much as possible. Lenders consider your debt when qualifying you for a mortgage. The more debt you have, the less home price you can afford and in some cases, you may be denied. This is true of any credit rating. Create a plan to pay off your debt as quickly as possible, and do not acquire any additional debt along the way.
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Step 6
Ask a family member to be a co-signer for you. Do this only if your family would be willing and you are absolute certain you can make the payments. Otherwise, this can be a huge strain on a family relationship.
