People who have gone through a bankruptcy wonder if they will ever be able to purchase a home. While it is true that a bankruptcy will stay on your credit report for 10 years, many lenders will loan money for a home before this time period has elapsed. Under some circumstances, there are lenders who have approved mortgages within two years of the discharge of a person’s bankruptcy. However, there are certain conditions that need to be met, and these are things that you can begin to work on the day your bankruptcy is discharged.

The first issue will be your credit. You can begin to rebuild your credit by paying down any debts that you still have that were not covered by your bankruptcy. A good example of this is student debt. This debt cannot be erased by a bankruptcy, but it will still affect your credit rating. One of the factors in determining your credit score is your income-to-debt ratio. The lower you can get your debt, the more your credit score will improve. In the first two or three years after bankruptcy, you may not be able to pay down your student debt, but you should try to get the balance down as low as possible.

One of the best ways to get your credit score up is to pay your bills on time. Right after your bankruptcy is discharged, you will find it amazingly easy to get a credit card. Companies know that after you have filed for bankruptcy you cannot file again for several years. Knowing this, there are several companies that will issue you a charge card. Being responsible by paying the balance each month will build your credit and demonstrate discipline in paying bills on time. A mortgage lender is going to need to be convinced that you have the discipline to meet your mortgage obligations after a bankruptcy. One credit card should be enough, and always remember to have the cash ready to pay for what you have charged each month.

After bankruptcy, you will need to budget your money and include a monthly amount for a savings toward the down payment needed for your home. After a few years of savings, you will probably have the money you need. This along with a good credit report, and you will be able to find a lender willing to qualify you for a mortgage. The interest rates will be higher than normal with the bankruptcy still on your credit report, but a mortgage will be available. At this point you will need to be realistic; only get a house that fits your needs with a mortgage that will fit with your monthly budget.