The lending market has tightened restrictions, making it more difficult to get home loans with bad credit. Financing a new home loan after bankruptcy is not as simple as it used to be. The good news is, there are a few steps you can take to improve your credit score after filing bankruptcy. If you establish good credit following a bankruptcy, creditors will be more likely to lend money for home loans in the future. Here are a few steps you can take to make it easier to get a home loan after filing bankruptcy:

1. After your bankruptcy has been discharged, make sure you make all of your payments on time. This includes any house payments, mortgages, car loan payments and credit cards. Make sure that any debt that reports on your credit report is paid on time so you don’t have any new delinquent debts reporting. By showing a pattern of paying your debts on time after bankruptcy, it is more likely that you will also pay a new mortgage payment on time.

2. Open a line of credit, or a credit card, even if it’s pre-paid. Use it to pay for gas or groceries, and pay it off each month. This also helps to establish a pattern of good credit management which can bring up a bad credit score.

3. Purchase a copy of your credit report online and make sure everything is reporting correctly. Sometimes debts that were included in your bankruptcy will still be listed as an open delinquent account which hurts your credit score. By disputing any items that are not reporting correctly, the credit reporting agencies will be able to convert the debts to report correctly as discharged in bankruptcy so they will no longer be bringing down your score. Get an Equifax 3-in-1 Credit Report Now >

4. Consult with a loan officer that specializes in sub-prime loans. An experienced loan officer can review your credit, job history, bankruptcy information and financial status and give recommendations as to additional steps you can take to obtain a home loan after your bankruptcy. Be patient as it may take several months to repair bad credit and boost your score high enough to  qualify for a home loan after bankruptcy.