If you’re among the thousands of homeowners who’ve lost a home to foreclosure, you may be wondering if you’ll ever be able to buy a home again. Well, in most cases, the answer is Yes!
Since a foreclosure affects your credit score, there are some important steps you’ll want to take as you get ready to jump back into homeownership.
Pay down/Pay off your credit cards
Paying off your credit cards completely is one of the fastest ways to improve your credit score. As credit card debt can account for up to 30% of your FICO score, paying off your cards can show improvement in your score in as little as a month!
But don’t close paid off/ unused accounts. They are actually good for your score!
Resist the urge to take out other loans
You may be tempted to get a loan for some pricey items, such as a new car, new furniture, or a vacation. Since your debt-to-income ratio is one of the most important factors lenders look at when determining your mortgage eligibility, it’s best not to have other outstanding loans that could impact your ability to get that mortgage.
Keep your credit clean
Make sure to pay all your bills on time and stay on top of your credit report. Take care of any inaccuracies as soon as you see them so that your mortgage loan isn’t held up waiting for the reporting companies to correct your information.
Losing your home to foreclosure can be devastating. However, it doesn’t need to be the end of your homeownership dream.
With proper planning, a bit of legwork, and a little patience, that dream can once again become reality!
Let’s get started,
Your Marketing Manager