Are you one of the many people that had to foreclose on a home in the last 10 years? If yes, you may be wondering is it possible to purchase a home after foreclosure. Yes, purchasing a home is possible after foreclosure and it can occur sooner than many think. To help succeed at purchasing homes after foreclosure, please review the following tips and information.
Rebuilding Credit - One of the first steps after a foreclosure is to start building your credit once again. A foreclosure does negatively impact your credit, but with the right steps you can repair the damage to your credit. Ensure that each of your bills such as car loans, credit cards and utilities are being paid on time each month. If you are renting, strive to pay the rent each month on time and have a good relationship with your landlord. When applying for a home loan, lenders will review this information and it helps to determine whether you will quality for a mortgage.
Savings - A new home loan will require a down payment ranging 3.5-25% of the price of the home. Placing a set amount in your savings each month allows you to build the amount required for your down payment and teaches you responsibility over your finances. The discipline required to place money in savings each month shows your potential lender that you have improved your financial situation and are dedicated to continuing to strengthen your finances.
Do Not Max Out Credit Cards - Large amounts of credit card debit are warning signs to lenders and mortgage companies that you have not fully recovered your finances. The higher the amount of unsecure debt that you maintain reduces the available amount of income that you have to pay for a home loan in the eyes of a lender. Before starting your home search, take time to reduce your unsecure debit by paying off smaller loans.
The decision to purchase a home after foreclosure is a big decision and I am here to help and answer any questions that you may have. We can review your options together, so you can make the best decision for you and your home. You can contact me, Laura Austin at (281)789-2911 or 936-321-2977 or email Laura@RealtyTx.net. To find out more information on short sales and avoiding foreclosures visit my website.
