Ohio residents who want to consider bankruptcy as an option to help them with their debt-relief needs may often hesitate for fear about their future ability to get new mortgages. Understanding exactly what type of an impact a bankruptcy may have on future creditworthiness is important so that consumers can make fully informed decisions.

Realtor.com explains that people who have filed bankruptcy should not worry that they will forever be barred from securing a new mortgage. There are, however, some basics that should be taken care of before applying for a new home loan after a Chapter 7 or a Chapter 13 bankruptcy. One of those basics is making sure that the bankruptcy is completely discharged. For a Chapter 13 plan, this may take 36 to 60 months.

Credit reports should be reviewed carefully once the bankruptcy is complete in order to make sure any errors can be addressed. Bankruptcy will be a negative mark on a credit report so eliminating as many other negative marks as possible is important.

Equally important is building up new, positive credit actions. SmartAsset suggests that starting with a secured credit card may be a good option. It may also be beneficial for consumers to save a sizeable down payment. This shows not only a seriousness about buying a home but an ability to save money. Debtors should also be able to explain how their financial situation is different compared to before their bankruptcy in order to make a lender feel safe about providing a loan to them and reducing fears that another bankruptcy may result.