We understand how difficult it can be to go through a foreclosure. It might seem like the prospect of owning another home is out of the question if you have recently lost your DC-area home to foreclosure. However, you shouldn’t completely rule out future homeownership. The following steps can bring you closer to your goal of owning a new home.
What Factors Are Necessary To Move Past A Foreclosure?
It will take some time to buy a new home after a foreclosure, which can stay on your credit record for ten years. Reputable lenders may consider a home loan request two to four years after your foreclosure. If your financial situation has improved, there is a very strong chance that you will end up paying a high interest rate.
Be Choosy When You Search For A Lender
Don’t just accept a home loan from anyone. Some lenders may offer you a loan but charge you very high fees, penalties and interest rates. A trusted lender will want you to show evidence of an improved credit score. Additionally, a lender may be more sympathetic to you, especially if the foreclosure was caused by unforeseen circumstances, like a sudden job layoff.
Get Your Credit Score Up
Improving your credit score is not something that can be done overnight. You will want to make a dedicated effort in paying off your debts as soon as possible. Be sure to pay your bills on time for at least a year.
If you still cannot find a lender willing to provide you with a traditional mortgage loan, you might want to consider a subprime loan. Subprime loans are given to individuals with low credit scores and typically have much higher interest rates.
Questions About Buying A New Home In The Washington, DC Area? Don’t Hesitate to Ask Us!
As a Member of the Top 5 in Real Estate Network®, I have a wealth of DC Metro real estate and homeownership information that may be of help to you. Feel free to contact me any time to learn more about this important information, and be sure to forward this article on to any friends or family that may be interested as well.
Long and Foster Realtors