Mortgage After Foreclosure Loans
Can I get a new mortgage after a foreclosure?
Yes, but trying to find the right financing options after a foreclosure can be very challenging. At Try Loan Online, we have answers to all of your questions. Buying a house after a foreclosure can take a lot of online research to find a bad credit mortgage lender with reasonable interest rates and cost. At Try Loan Online, it can be done with the help of our online lenders. Below are some tips you may want to follow before approaching our lenders for a new home mortgage after a foreclosure.
Update your Credit Report:
This is really the most important aspect of getting a new mortgage after a foreclosure. Today, many consumers have no idea what is listed on their credit report or what their credit score is at the time of application. If you have prior foreclosure listed on your credit report, having that information updated will be vital. The lender will be more likely to help you with a credit report that is accurate, versus a report that has not been updated and is not telling the true story of your financial history. We recommend that you go online to the following credit bureau agencies and obtain a copy of your credit report. Here are the three major credit bureaus that most lenders use today to qualify. www.experian.com, www.transunion.com, and www.equifax.com. We also recommend www.freecreditreport.com as a source of getting a free copy of your credit report. Once you obtain these credit reports you will want to have all of the old information corrected. This will not only help your report look better, it will help enhance your credit score. Also consider information found on the Federal Trade Commission site as it relates to rebuilding credit.
|Building a Better Credit Record
Federal Trade Commission
600 Pennsylvania Ave., NW, Mail Drop NJ-2267
Washington, DC 20580
|Explains how consumer reporting agencies work and your rights under the Fair Credit Reporting Act. Explains how you can legally improve your credit report. Offers tips on dealing with debt. Cautions about credit-related scams and how to avoid them. List of additional resources.
Finding the right home:
Perhaps in your last home you over spent and purchased to large of a home or just did not plan for rainy days. Most lenders today like to lend when the buyer or borrower is not using more than 50% of his or her gross income to pay back a note, consider this when deciding on the home size, cost and overall total endebtness. Choosing a home in which the seller will pay a portion or all of your closing cost will also make you process smoother. The lender will see most of the closing cost are coming from the seller versus you. Lenders know, most buyers tap out all of their savings just to get into a home and often fall short when a major repair arises. For this reason, the lender will allow in some cases all of the closing cost to be paid by the seller. Remember, look for sellers that are willing to pay some or all of your closing cost as it will not leave you cash poor once you get into the new home.
Choosing the Right Mortgage program:
Now that you have your credit report in order it is time to move on to the next step of the process which is finding a mortgage program. The first thing you will need to understand is this can possibly be done without you paying large amount of cash down. If you are getting assistance from the seller, chances are if your credit scores are high enough it may not require you to pay any money down. Our lenders have programs that will finance up to 100% of the sales price, even after a foreclosure. So, be sure and ask for the maximum amount possible when buying your home after a foreclosure. Getting an adjustable rate mortgage may not be a bad idea in this case because the rate is going to be a little higher, for the fact you will have to prove to credit worthiness again. So, take the adjustable rate mortgage for a year or so and later refinance out of it when your credit looks more established.
All of the above information should be a good guide to helping you achieve the American Dream, which is home ownership. So, lets get you going. Click below and let one of our network lenders show you how easy it is to mortgage after foreclosure.