| Buying a home after a foreclosure is just a matter of | | | | mistakes. |
| careful planning and researching. While a foreclosure | | | | Step 2 - Plan Your House Payment |
| will stay on your credit record for seven years, you | | | | Plan your house payment before you seek out a |
| can qualify for a mortgage sooner than that. The | | | | mortgage. You can use a mortgage calculator to |
| following steps will give you a quick overview of how | | | | figure your monthly payments on the different types |
| to buy a home after a foreclosure. | | | | of loans available. Adjustable rate mortgages come |
| Step 1 - Re-establish Credit | | | | with the lowest rates, but fixed rate loans guarantee |
| Once a foreclosure has been discharged, you can | | | | that your interest rates won't increase over the life of |
| start reestablishing credit. The first year after a | | | | the loan. |
| foreclosure is the most difficult to qualify for a home | | | | Step 3 - Shop For Financing |
| loan. With a score 550 or lower you will qualify for the | | | | Shopping for financing to buy your house will make |
| highest rate loans, usually six points or higher than a | | | | certain you get the best rates and fees. Request |
| conventional loan. Waiting a year can increase your | | | | quotes from as many lenders as possible to find that |
| score to the 600's and drop rates a point or two. | | | | special deal. Mortgage broker sites can help you |
| Waiting another year can have you in good credit | | | | compare multiple offers at once. They can also have |
| standing with loan rates only nominally higher. | | | | special deals not available through individual lenders' |
| While you are waiting to purchase a home, work | | | | sites. |
| toward improving your credit. Opening a credit card | | | | Step 4 - Secure Your Mortgage |
| account or two is a good way to show you can | | | | When you have found a good financing package, don't |
| handle payments. Saving for a down payment or cash | | | | wait too long to apply. Rates change daily. Completing |
| reserves also improves your score. | | | | the application can lock in rates even if you haven't |
| Before you start loan shopping, check out your credit | | | | completed the home purchase. Getting pre-approved |
| report to verify all the information is accurate. You | | | | can also give you several days or weeks to shop for |
| don't want to pay higher rates for someone else's | | | | a home at a guaranteed rate. |