Contributor
Elcid89
Posts: 567
Registered: ‎10-04-2012
Re: Intro and homebuying question

You should be fine. You have demonstrated revolving and installment loans, and a comfortable number of trade lines.

 

Just keep your utilization below 20% (maximum ...) and PIF each month if possible. Religiously, and I do mean religiously, make your payments on time.

 

3 to 6 months (6 months is ideal) out from your planned mortgage application date, stop applying for new credit. You want the mortgage lender to see established lines with a healthy payment history and low utilization, along with low to no inquiries for the 6 months preceding the app.

 

Do that and your chances of being approved will increase. Just don't get discouraged if lenders decline to buy the mortgage. a BK is toxic, and that may slot you into less than prime lenders & rates, but anything can be done with enough work and diligence. Just stick with this and live the lesson that it teaches about managing debt.

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