I Have A Foreclosure, How Long Before I Can Apply For A New Home Loan?

Secrets to applying for a new home loan after foreclosure.

Going through a foreclosure will damage your credit severely, but you can recover. Fixing your credit and working on rebuilding your financial standing will greatly improve your chances of purchasing another home.

How Long Before I Can Apply for a New Loan?

One year after your foreclosure, you should be able to apply for a new home loan. However, your chance of being quoted a very high interest rate is great and you may risk getting into another loan you cannot afford. The longer you wait, the greater chance you have of getting an affordable rate. Three to four years is your best bet when it comes to seeking a new home loan.

What Do I Need to Do To Qualify For a New Home Loan?

Fix your credit. Obtain a copy of your credit report with all three FICO scores and review why you have poor credit. If you have loans you can pay off, do so immediately. If you find any indiscretions, such as bills you have paid to date which still show as late, call the credit bureau and have it corrected. Your credit is your responsibility. Keeping track of what goes on your credit will greatly improve your credit score.

How Else Can I Prepare for a New Loan?

Build a savings, pay all your current bills in full and on time, and watch the housing market. Know the area you want to live in and what it will take to get you there. But, be realistic. Try to save anything excess about your rent that you think you would have to pay. If your rent is $1,000 a month, try to save as though it were $1,300. Put that extra $300 away to see if you can really survive on that type of payment.

Related posts:

1. How Can A Bad Credit Mortgage Loan Help Me?
2. How Long Before I Can Apply For A New Home Loan With A Foreclosure?
3. I Have a Foreclosure, How Long Before I Can Apply For A Bad Credit Home Loan?
4. When Can I Get A Mortgage Loan After A Foreclosure?
5. How to Buy a Low-Cost House With Bad Credit?