You would certainly want to increase your chances of qualifying for a mortgage after bankruptcy, and it would be a good start if you can correct your past mistakes first, learn from them and take necessary steps to rebuild your credit.

For sure your credit rating will make you a less attractive prospect for potential lenders so you need to rebuild your credit as soon as possible. This is a crucial part of recovering from bankruptcy. You need to understand that the type of bankruptcy you filed will decide the amount of time it stays on your record. If you filed for Chapter 7 bankruptcy the amount of time it will stay on your record will be ten years. Chapter 13 bankruptcy will stay on your record for seven years. Although there is an amount of time that creditors will see that you have a bankruptcy discharge on your record, it does not mean that you will not be legible for credit.

Your first step in qualifying for mortgage after bankruptcy is to not apply for another credit. The last thing you want to avoid is getting in debt again after bankruptcy. And as you will find out, it would be difficult for you to obtain credit for around a year following bankruptcy discharge. Most lenders will want to wait for at least two years before they allow their bankruptcy discharged client to apply for a mortgage. In some cases though, you can be able to apply for a mortgage eighteen months or so. This will all depend on your financial behavior between the times of your bankruptcy discharge date until the time of your mortgage application.

The second step is to establish new credit accounts. This may sound scary, but if you do not make the same mistakes as what you did before everything will go on your favor. You will need to open new credit accounts to increase your credit scores. New credit accounts may involve opening new major credit card, store credit card, automobile loan, and so on. And once you have secured obtaining these types of cards, you will need to do three things. These are, to always make your timely payment, maintain low balances, and payoff the balance each month.

Lenders will see that you are financially responsible if you manage you cards well and maintain regular and well-timed payments. Being financially responsible will allow you to be eligible for an unsecured credit card. Also, within two years you may have the privilege to get a mortgage or auto loan. If you are thinking of applying for a mortgage earlier than the two year period, you will have to search for a lender that can help you approve mortgages for people that had bad credit standing. Do not be surprised if you find out that this type of lender requires larger deposit and have high interest rate, because that is how the way it is. But if you really want it sooner than two years, then this type of lender is your best option.

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