Preparing to buy a house after bankruptcy

Preparing to purchase a home in Louisiana requires careful planning, especially after going through a bankruptcy. Contrary to what some would have you believe, just because you filed for bankruptcy does not mean you can never buy another home.

There are plenty of creative ways to rebuild your credit in preparation for buying a new home. Understanding the next steps can help you proceed with confidence as you continue to take control of your future and create a better life.

Waiting for the right time

You will need to wait some time before you can qualify to purchase a home again after bankruptcy. According to Realtor, how long you will need to wait depends on a few different factors including the type of bankruptcy you filed for and the type of home loan you need.

Obviously the longer you wait after the dismissal of your bankruptcy, the better it looks when you fill out a home loan application. However, just because you have to wait to apply for a home loan does not mean that you cannot do anything. Use your time to rebuild your credit, develop a budget and regain control of your finances.

Knowing your rights

Just because you previously filed for bankruptcy does not mean you have lost your rights. Some lenders may disregard your qualifications with just one look at your financial record. Knowing your rights and the laws in the state of Louisiana can help you recognize discriminatory practices.

Before applying for a new mortgage, check your credit score for errors. It is not uncommon for reporting errors to continue to affect your score even after you have improved your financial situation and have rebuilt your credit.