Many people are told that bad credit decisions will only stick with you for seven years. Think back to seven years ago, it feels like a lifetime ago, doesn’t it? Seven years is a long time and the fact of the matter is that many of the mistakes that we make stick with us for a lot longer than seven years because they just keep lingering and lingering. There are many instances where people cannot help but have their home foreclosed on and it wasn’t because they didn’t want to keep their home or because they weren’t working to keep it. Things happen and many people assume that once they have been through foreclosure they will never be able to buy a home again. This is not the case at all, so if you have been through foreclosure you should not assume that there are not home loans out there for you.
Home Ownership Again
Home loans are one of the things that there is so much misinformation about. While 20 years ago there were a lot of people who would not be able to get a loan under any circumstances, most people today can get a loan if they know where to look and they are willing to consider specific loan programs. Foreclosure can definitely change your financial plans but it doesn’t have to keep you from enjoying the joy that comes with owning your own home.
If you have a foreclosure in your past you will not likely be able to qualify for the same loans as someone who has perfect credit and not one blemish on their credit report. That being said, you can still qualify for plenty of loans. In fact, you can get a great loan that will allow you to buy a home that you love at an affordable monthly payment. Many people look at a foreclosure as the end of their financial existence, but you should instead approach it as the beginning of better financial and credit decisions.
What you need to understand is that you cannot have one home foreclosed on and then immediately begin to apply for home loans and expect to qualify for them. Generally speaking you will need to wait four years before you can start applying for home loans again after you have been through a foreclosure. Many people get angry that they have to wait this long, but instead of being angry about it you should use this time to build your credit back up to what it should be. You should get a couple credit cards and pay them off each and every month, should pay all of your bills on time, and you may want to see if you can get an auto loan. This will allow you to keep making strides where your credit is concerned so that future creditors will take you seriously when you ask them for financial support.
When your four years are up you can then go out there and check out all of the home loans and see which you would like the most. You may find that FHA loans are a great option if you want to keep your down payment small or if you have been able to save a bit more you may be able to qualify for several different conventional loans. If you use the time you have to wait before you can buy another home to keep building your credit you will find that home ownership really can be possible after a foreclosure.
By : IC
