Many people think that once you file bankruptcy it is nearly impossible to obtain a mortgage on a home. Fortunately, this is untrue. Some can obtain a mortgage after bankruptcy in as little as one day after their bankruptcy has been discharged. Most can get a mortgage within one to two years after. Keep in mind that you may need a higher down payment and/or your interest rate may be higher. Here is how to get a mortgage after bankruptcy.

Because bankruptcy gives you a fresh start, so to speak, it is recommended that you now make timely payments on all of your bills. Credit can be reestablished by paying car payments and credit card payments that were not discharged on time.

Debt to income ratio is the most prominent factor that will determine if someone will qualify for a loan. Lenders will compare how much you make against how much you owe to other creditors. These numbers indicate whether or not you can afford to make your mortgage payment each month.

Potential debt is yet another factor involved of the mortgage equation. Eliminate as much unused debt as possible. Keeping your open lines of credit too high indicates potential debt to the lender. Even if there is no balance on these accounts, the possibility of using this credit does exist.

Be sure to hand in all of the loan documents that your loan representative is asking for in a timely fashion. Showing the ability to produce documents on time will show the lender responsibility on your part, which makes you a better candidate for borrowing.

After your bankruptcy is discharged it is a smart idea to check your credit report. You should look at your report from all three credit bureaus (Experian, TransUnion, and Equifax) to check for inaccuracies, paying extra attention to the accounts that were discharged to make sure it is not still outstanding. If there are any discrepancies, be sure to dispute them and have them removed. Do not allow credit report errors to hinder you from obtaining a mortgage after bankruptcy discharge.

Shop around for lenders to obtain pre-approvals. Having a pre-approval can give you a little more security while shopping for a home. You will know where you stand as far as how much you can spend and how soon you will be able to get the money to the seller. Getting pre-approved will cost you nothing, and is well worth the extra time you have taken to do this.

Bankruptcy is a last resort, but it does not have to ruin your life. With some careful planning and responsible behavior, you will be on your way to getting a mortgage after bankruptcy.