If you are in a situation where you might file bankruptcy but still want to eventually buy a home, don't worry! A bankruptcy will reduce your credit score by 200+ points, but this result is not permanent.

After your bankruptcy you need to focus on making a perfect payment history with three or more credit references. Also, you will usually need to wait two years from the discharge of the bankruptcy in order to be considered for a home loan.

It helps to get letters from people with whom you have been paying bills on time with (telephone, or other utilities, for example). You can never have too many good reports of your enhanced credit responsibility, especially after a bankruptcy.

It is a great idea to keep your current job, and ideally the same job from the time of your bankruptcy. Remember, you are trying to prove your consistency and reliability as much as possible.

As your credit lines start coming back, be careful not to use too much of what is available. Keeping the charges you make low will be a beneficial signal to lenders that you are serious.

A warning I always explain to people is to make sure whatever was causing the problems that led you to consider the bankruptcy, in the beginning, have been fully fixed.

Bankruptcy is a serious event. You will be closing the windows on almost any credit for a time, not to mentions the financial mark it leaves will remain on your credit report for 10 years. Recurring financial problems become harder to deal with once you have filed bankruptcy.

Once you have made all the appropriate post-bankruptcy steps then you are ready to start your search, keep the following tips in mind.

Be very wary of sub-prime lenders who charge excessive amounts from processing fees, pre-payment and other fees. As I often say, if it seems excessive or unfair, it probably is.

Make sure you obtain 3 or more quotes from different loan officers. This will help you find the best deal.

Do not get frustrated, get creative! If you still need extra cash for a down payment, consider borrowing it form a friend or relative. After closing, you can often apply for a second or third mortgage up to the value of the house to repay. (Make sure to discuss any creative ideas with your lender)

First-time-buyers. Usually there are sate-operated first-time buyers programs that can help you get started. A short web search can work wonders.

Make sure you've exhausted all other options short of bankruptcy before you take this step. Having creditors harassing you can magnify problems that you might normally handle without considering a major bail-out.

Finally, examine your credit report for errors and opportunities. Negotiating toward a clean financial bill has prevented many from filing for bankruptcy. Whatever your choice, take action today " you'll be glad you did!