Going through a foreclosure is a truly heartbreaking experience. It might seem like the prospect of owning another home is out of reach for those who have lost their home to foreclosure. However, homeownership can be a possibility if the following steps are taken.
What Factors Are Necessary To Overcome A Foreclosure?
It takes time to get into a situation where you can buy a new home. A foreclosure can often stay on your credit record for ten years, and lenders will usually consider a home loan request two to four years after your foreclosure. If your financial situation has improved, you will still likely have to pay a high interest rate.
What You Need To Look For In A Lender
It is important that you don’t accept the first loan offered to you without doing your homework. Some lenders may offer you a loan but charge you with very high fees 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 if you have a good reason for the foreclosure. This may include a job layoff or unexpected medical bills.
How To Improve Your Credit
Although fixing your credit is not a quick fix, you will want to make a solid effort in paying off your debts as soon as possible. Paying on time for up to a year is crucial in helping your credit.
If you still cannot get a lender to make you a traditional mortgage loan, you might want to consider a subprime loan. Subprime loans are given to individuals with low credit scores, but typically have much higher interest rates.
Questions About Home Ownership In Chevy Chase? Don’t Hesitate to Ask Us!
As a Member of the Top 5 in Real Estate Network®, I have a wealth of Chevy Chase, MD 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