| In any matter involving asking for borrowed fund, your | | | | to assess you as being less of a risk. |
| credit rating is an important factor. Having bad credit | | | | Don't Be In A Rush |
| will make it much more difficult to convince a creditor | | | | Don't try and buy another home too soon after being |
| to give you another loan. | | | | foreclosed, unless for whatever reason you have the |
| Having a foreclosure on your credit history is by far | | | | funds available. You may also be able to secure a |
| the worst event that can happen to your score. | | | | sub-par loan but your interest rates will most likely be |
| Many people believe that once they have a | | | | above the average. |
| foreclosure on their credit rating they will never be able | | | | Sub-par lenders will typically charge high interest rates |
| to own a home again. This is not the case; all it takes is | | | | of around 12% or more, where as regular interest |
| re-building your credit rating and employing good | | | | rates sit around 6.2% to 6.8%. Their fees tend to be |
| financial habits. | | | | much higher as well, so it is usually better to wait at |
| Obviously you won't be able to buy another house the | | | | least 12 months to 24 months to secure better |
| week after you've been foreclosed. This foreclosure | | | | financing. |
| will be on your record for seven to ten years. | | | | Compare Mortgage Lenders |
| Build Your Credit History | | | | If you decide to try to purchase a home right after |
| Your FICO score will be affected by your foreclosure | | | | foreclosure, make sure you compare the lenders that |
| and this will be the case for up to ten years. Over this | | | | are willing to work with you. Most sub-par and high |
| period it is likely that any application will be met with | | | | interest lenders will offer very high interest rates and |
| rejection. | | | | fees. |
| In this time period, you should establish new credit by | | | | Get quotes from several lenders before choosing one |
| using pre-paid credit cards that are paid off monthly. | | | | to garner the best deal possible. Watch out for scam |
| Pay all bills when they are due and you can also use | | | | lenders too; check them with the Better Business |
| store credit cards. Once your credit has been rebuilt | | | | Bureau to make sure you are working with reputable |
| and time has gone by, financial institutions may be able | | | | companies. |