Have you recently filed bankruptcy and are looking to buy a house some day? You may be surprised but… many people are in your shoes. Unfortunately bankruptcy does take a serious toll on your ability to borrow funds and take on any type of debt. Your credit score and reputation both take major hits. But there is good news! Times have changed over the past ten years and with a solid plan in place it is possible to get a mortgage just two years after bankruptcy! So the question becomes, what do you need to do?

During your bankruptcy process most mortgage bankers will not even talk to you about getting a loan. That being said, the first step is simply getting out of the process. This is a must and needs to become your priority. This seems obvious but unfortunately it is not to most. So, if you are still doing credit counseling or are involved in any financial guidance programs finish those up and get your bankruptcy “Discharged”.

The next step is taking care of your credit report. Obviously the goal of bankruptcy, credit counseling and financial take over programs is to help you settle your debts to lenders. Assuming after the process most of these, if not all, are settled. The unfortunate thing is that doesn’t mean your credit report reflects this. Get on the phone with the credit agency and get them to reconcile that. This may take serious amounts of persistence but is well worth the headache.

After or during the clearing of your credit report is the time to rebuild your credit score and history. The quickest and best way to do this is through secured credit. Whether it be a secured credit card or various types of secured loans these options are a huge asset to you on your road to recovery. There are many other tips but we will not go into them on this entry.

During the credit rebuilding stage it is absolutely crucial to create a plan to save money. Lenders will likely emphasize having money in the bank in order to get a mortgage.

Lastly, once all is done add a bit of patience to the mix. Wait at least 2 years from the discharge of your bankruptcy before applying for a mortgage. Being diligent and disciplined with the process laid out here will go a long way in making this happen for you.