If you have a bankruptcy on your record you can still qualify for a mortgage. You need to research lenders and find the best mortgage available to you; once you have this mortgage you can use it to repair your credit. Here is what you need to know to get started.

Bankruptcy on your credit records is going to weigh heavily on your credit score. If your bankruptcy was discharged less than four years ago you will need to qualify for a mortgage with a sub prime mortgage lender. Bad credit mortgages come with higher fees for nearly every aspect of the loan. Because of these fees you will need to shop for the best loan offer available to you, and do it smartly.

To get started you need to have a record of reliable repayment. That means making all of your payments on time. You need to be responsible with the credit you have; keep the balances on your credit cards low and do not open too many accounts. Open a savings account and start putting money away in the bank. This will help you when you are ready to refinance with a traditional mortgage lender.

The single most important aspect of this mortgage is that it must not come with a prepayment penalty. Mortgage lenders like to charge a penalty if you refinance or sell the home during a certain timeframe. You will be refinancing this loan after two or three years of rebuilding your credit; you do not want to be hit with a penalty when it is time to refinance the mortgage. If the lender you are considering refuses to remove the penalty, look for another lender.

The mortgage industry is extremely competitive; because of this you will be able to find a bad credit lender that will provide the mortgage you need. To learn more about finding the right mortgage after bankruptcy, register for a free mortgage guidebook.