After deciding to purchase a home after bankruptcy, it is necessary to examine your credit report. Request your credit report from each of the three major credit bureaus. Each year, you are entitled to one complimentary report. Check your report attentively to determine where the negative comments appear. Then, compose a letter to each credit bureau and request that they remove the negative information. Do not request that more than four items be removed.
Then it is necessary to begin saving for the down payment. Typically, the bare minimum is around 10 percent, and you should strive for this or more. The best method to save is by placing money in a high-interest savings account. Put money into this account each month with diligence. Nonetheless, avoid falling behind on any of the other payments. Ensure that you pay your expenses and credit cards on time and in full.
If you still have debts, strive to eliminate them or at least minimize them as much as possible. Lenders view this extremely favorably.
Once you've saved enough money for the down payment and have been paying your expenses on time, you should approach a lender. Obtain a family member's signature on the agreement. Nevertheless, ensure that you can afford the monthly payments, or the family member will endure. Because of your inability to make mortgage payments, his or her credit rating will suffer.
Keep in mind that you will have to wait two years after the discharge of your bankruptcy before you can purchase a home. Therefore, you should wait until this period ends before applying for a mortgage. If you can provide evidence that you have a down payment, you will receive a better interest rate and may be eligible for a mortgage without a prepayment penalty.
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