It may seem like an impossible task to qualify for a mortgage if you have a bankruptcy on file. It definitely makes the process more challenging but not impossible by any means. The steps to obtaining a mortgage after a bankruptcy filing include; waiting it out, ensuring that your credit report is accurate, building positive trade lines and holding a steady job.

FHA loans are a possible option. If you have are making payments on a Chapter 13 you will be eligible if you have been paying in time for at least 12 months. If you filed a Chapter 7 you will need to wait at least 24 months after the discharge date before being eligible. Keep in mind that the filing date is not the same as the discharge date.

Make sure that your credit report is accurate and that trade lines included in the bankruptcy appear as such on your file. This is preferable to accounts showing late payments or appearing in collection or charge-off status. It is possible to accomplish this by filing a dispute with each of the three agencies and sending each bureau a copy of your discharge papers itemizing which accounts were included. Disputes can be filed via mail, phone or fax. You will need to disclose your name, address, social security number and the exact nature of your dispute. Legally, the agencies will have a total of thirty days to investigate the claim and will mail you a corrected report once their investigation has ended.

Build up some positive trade lines and pay them on time. If you have existing accounts in good standing just keep paying them on time. The age of an account has an effect on scoring as well and it’s good to have trade lines which have remained in good standing for a longer duration of time. If you do not have any accounts in good standing then you might want to open a few secured credit cards. Make sure that the issuing bank of those secured actually cards report to the three agencies before you apply, otherwise there isn’t really a point. You will need to have a combination of both installment and revolving accounts which are in good standing. Revolving accounts are credit card accounts while example of installment loans are auto and student loans. It is important not to apply for too much credit at once since excessive inquiries can lower your score.

Prospective lenders like to see at least two years of employment at the same place. This shows financial security and an ability to pay. It is also vital to keep your employment within the same field or line or work. Keep all your check stubs and tax returns in a location that is easily accessible in case the lender needs to review them.

With advanced planning and time on your side, it is possible to get that home you’ve always wanted, even with a bankruptcy on file. Work on building positive accounts, correct inaccuracies on your credit file and keep a steady job. With time on your side, you can rebuild your credit and obtain the home you have always dreamed of.

About the Author: Written by Jacqueline Star: Home Loan, San Diego New Homes, New Homes In Chula Vista

Source: isnare.com

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