Bankruptcy

It is better to wait for two years after bankruptcy before looking for a home mortgage. It is also important to pay all bills on time during this period. At the same time, it is good to save for the down payment. A combination of a savings account and either certificates of deposit or saving bonds can be used to invest the down payment money. A large down payment poses less risk to the lender and thus the lender may be motivated to offer a lower interest rate.