Foreclosure can make it seem impossible to ever buy a house again. The impact of the process can be devastating, long-lasting, and touch your life in a variety of negative ways. While you may believe you are destined to be a renter for the rest of your life, foreclosure doesn’t have to mean that buying your own home is no longer possible. The first step in recovering from a foreclosure is to assess your current financial situation and determine how much you can afford for housing, as well as what type of loan might be best for your budget. It’s important to review all of your finances carefully, including income and monthly expenses, so that you know exactly what kind of mortgage payment you are able to make each month.
Rebuild Credit
Your credit report must be improved during the period you are forced to wait to qualify for a mortgage, so that you may buy a house after going through a foreclosure in Miami Lakes. After assessing your finances and determining what kind of loan would work best for your budget, it’s time to get an up-to-date copy of your credit report and check on any negative marks caused by the foreclosure. Knowing where you stand with lenders is key when trying to qualify for a home loan after experiencing a foreclosure.
Save Your Cash For A Down Payment
Because your credit has been so adversely affected, the more you save towards buying a house after going through a foreclosure in Miami Lakes the better. One potentially difficult hurdle when applying for home financing after going through a foreclosure is saving enough money for down payment if required by lenders; this amount will vary depending on which type of mortgage program chosen but could range anywhere from 3% (FHA) up 20% (conventional). Having saved funds available upfront also shows potential lenders that despite having experienced economic hardships in the past, borrowers are still financially responsible people ready take ownership over their future purchases responsibly via proper research and planning ahead – something many respectable institutions look favorably upon during approval processes!
Improve Your Credit Score
Pay your bills on time. Late payments are one of the biggest causes of a low credit score, so it is important to make sure you pay all your bills by their due dates. Keep balances low on credit cards and other “revolving” credit: High outstanding debt can affect a credit score. Try to keep the balance on each individual card below 30% of its limit, and if possible below 10%.
Pay off debt rather than moving it around: When you transfer balances from one card to another or consolidate multiple debts into one loan, this can be seen as an indication that you are having difficulty managing your finances – which will have a negative effect on your credit score. Check your Credit Report regularly: It is important to review your report at least once per year (you can get free copies from AnnualCreditReport) to ensure that all information is accurate and up-to-date, as incorrect information might lead to lower scores
Find A Lender Specialized In Working With Foreclosures
Regrettably, circumstances in life can bring on changes that are unpredictable and are beyond our control and we are usually forced to live with the consequences. Should the cause of your foreclosure fall under this category, this fact can shorten the waiting period needed for you to qualify for a mortgage. Once you have assessed your finances and reviewed the status of any potential issues with credit reports or scores resulting from the foreclosure, it’s time to start searching for a lender who has experience working with borrowers who have gone through foreclosures in the past – preferably one who specializes in government-backed loans like FHA loans or VA loans due to their more lenient qualification requirements compared to non-government backed options like conventional mortgages.
Professional Buyers
It’s never a bad idea to have an experienced guide, especially when you’ve done all of the work or repairing your credit and making sacrifices to save, in order to achieve homeownership again. Professional buyers can help you find a house at a discount. Considering the impact of a foreclosure on your credit, the lower the mortgage, the more savings over the long term. You can rely on the network of industry professionals that have been built over time with the best in the business. These professionals work to fulfill your goals and suit your needs, from the initial inspection through closing. Because of such networking, professional buyers have the inside scoop on the best deals in Miami Lakes.
Why not let a professional buyer, like those at Down South Florida Home Buyers, guide you step by step through the process needed to buy a house? Down South Florida Home Buyers makes it easy to buy a house and save money after going through a foreclosure. Ready to learn more about how to buy a house after foreclosure in Miami Lakes? Reach out to Down South Florida Home Buyers at (239) 766-6225 today!