| You have gone through bankruptcy and you do | | | | you have received credit counseling, and the |
| not owe anyone. Now is the perfect time to | | | | counseling will help you in several ways. A good |
| purchase that home you have always wanted | | | | credit counseling agency will help you create a |
| right? Wrong! Yes, you can probably locate a real | | | | budget and counsel you in how to use and stick |
| estate mortgage lender, since you cannot declare | | | | to it. They offer counseling on using credit in your |
| chapter 7 bankruptcy again for at least 6 years. | | | | future, as well as how to re-establish your credit. |
| The problem is that you will pay the highest | | | | They can help you move toward your goal of |
| finance charges for the privilege of obtaining that | | | | buying real estate. Once you have successfully |
| real estate mortgage, charges that will extend | | | | completed credit counseling, ask them for |
| over the life of the real estate loan. | | | | something in writing to that effect. It can help |
| Before even looking at real estate, get your | | | | when applying for your real estate loan |
| credit straightened up first. The bankruptcy will | | | | The problem is finding a reputable agency. Some |
| appear on all three of your credit reports from | | | | are downright questionable. Here are a few ideas |
| seven-to-ten years, which will make you a higher | | | | to assist you in locating a reputable agency: |
| risk to real estate lenders. You cannot do anything | | | | They should be a member of either the National |
| about this; however, you can show real estate | | | | Foundation for Credit Counseling or the |
| lenders that you are handling credit much better | | | | Association of Independent Consumer Credit |
| now by rebuilding it. This can lower your risk | | | | Counseling Agencies. Both are national trade |
| factor, when obtaining a real estate mortgage. | | | | associations. |
| Using the following improvement steps, you | | | | Agencies approved by the U.S. Trustee's office |
| actually can rebuild your credit in a relatively short | | | | (part of the Department of Justice) are good |
| time. | | | | agencies. You can see those for your area at: |
| First, get copies of your credit report from the | | | | Interview the agencies, asking what they offer |
| credit agencies, and clean them up. You have the | | | | and the cost for each service. Good agencies |
| right to one free report from all three agencies | | | | should meet with you for 60-to-90 minutes, |
| annually, which can be obtained through | | | | reviewing your financial situation and offering |
| Ensure that creditors, who were listed in your | | | | budgeting advice before doing any credit repair. |
| bankruptcy, have cleared their information from | | | | Ask for costs in writing from the agency you |
| your credit reports. Otherwise, it will appear as if | | | | choose. They should charge around $50 or less, |
| you still owe them money and are not paying. | | | | with budget counseling sessions for less than $20 |
| Ensure any creditors not listed in your bankruptcy | | | | each. |
| and you are paying regularly have been reporting | | | | Steer clear of those who push their debt |
| your good credit record to all three agencies. | | | | management program, where they want you to |
| Contact any not reporting this and ask them to | | | | pay all your remaining creditors through them. |
| do so. This will increase your chances of getting a | | | | Check for more ideas from the Federal Trade |
| loan for your real estate. | | | | Commission. |
| If there was a specific event or cause for your | | | | Use the credit counseling agencies to help you |
| bankruptcy, you can add up to a 100-word | | | | rebuild your credit the right way. It can take less |
| explanation to your credit report at each agency. | | | | than a year to achieve; yet, it will make a big |
| The real estate lender will get this explanation as | | | | difference when you obtain that real estate |
| part of your credit report. | | | | mortgage. |
| It will look especially good to real estate lenders if | | | | |