If you have a bankruptcy in your past, it can affect your ability to get a loan; however, you can do things that will improve your chances of getting approved for a mortgage faster. The best thing you can do if you want to buy a house after bankruptcy is talk to a mortgage broker. The broker will tell you exactly what you need to do to qualify for a loan, and he or she will tell you exactly when you should qualify for a loan. Here are several things to know.

You Will Need to Wait the Appropriate Length of Time

After filing for bankruptcy, there is a period of time in which you will have to wait before you can get a loan, and the length of time varies by loan type. For example, you must wait for at least two years if you want to get an FHA loan, and the two-year period starts from the date the bankruptcy was discharged. You will have to wait longer than this if you want to qualify for a conventional loan. Your mortgage broker can help you determine which loan type will be best for you.

You should also know that if you have a foreclosure on your credit report, this can extend the wait period. Again, this is why you should talk to a mortgage broker. He or she can look at your credit report and current financial situation to help you know when you should apply for a loan.

You Will Need to Work on Your Credit

From the minute your bankruptcy hits your credit report, it will cause your score to decrease. The decrease in credit score can be significant, and you will need to work on improving your credit score before you apply for a mortgage. Your credit score will also dictate what type of loan package you qualify for, and your mortgage broker can help you find ways to increase your score.

One way might be taking out a personal loan or a car loan. The purpose of this is to rebuild positive payment history. If you owe any debts, the broker might recommend paying these off right away too. In addition, the broker might suggest saving up money to use as a down payment.

If you have questions about getting a loan after a bankruptcy, contact a mortgage broker to learn more about timing issues and steps you can take to improve your score.