It is not an easy task recovering from bankruptcy, but it is possible to get a mortgage after being discharged. The best way to see if you can get a mortgage after bankruptcy is to go through the pre-approval process. No risk involved and it is fast and easy. Upon completion you will have exact terms and payment of the loan. It is possible to get up to 28 percent of your pre-tax income, but it is up to you to decide if you can comfortably and consistently afford to pay that amount. One of the first things that needs to be done is begin building up your credit, by paying on time anything that wasn’t discharged promptly and also limiting any other debt. Your lender will look at your debt to income ratio in determining if you are able to pay back the loan. It is very important that you show your lender all existing income in paper form (pay stubs and tax returns for example) as proof that you are able to repay any type of new loan. These documents that verify your income are important to prove that you make income on a consistent basis. When you pay your rent on time that is the beginning of establishing a great financial track record. Checks are stamped with date and time, which is a perfect document to present your lender. Money orders or cash are not good choices because they are difficult to validate.
If you don’t have a checking account, a tenant will have to get a receipt from the landlord to prove their payment history. Have you checked your credit score report lately? This would be smart idea because more often than not there are inaccuracies and these need to be dealt with and may take time to be resolved properly. Be patient and persistent with this process, it will not happen overnight. Equifax, Trans Union and Experian are the major credit report agencies.
In reality, you probably will have to pay an interest rate higher than someone with perfect credit, but you can always refinance at a later time for a better rate. Waiting a couple of years after bankruptcy can provide enough time to get your credit report to a place where it might be possible to qualify for average rates. Do some preliminary shopping online for lenders; you can easily see comparative rates at a glance and save time.