Login
Password

Forgot your password?

How Long After Foreclosure Can I Purchase a Home?

By Edited Jan 2, 2016 0 2

If you finding yourself wondering, how long after foreclosure can I purchase a home, you should know that you're not alone. This challenge is facing many Americans during these tough financial times. If you've lost your house to the bank, a new house may be hard to get for some time. How long after foreclosure can I purchase a house? While there is no perfect answer to this, there are some things you should consider.

Your credit score:

How long after foreclosure can I purchase a house is going to depend, at least to some extent on your credit score. For this reason, it becomes more likely as time passes, but that doesn't mean you need to wait forever. You can improve your credit score you get approved. If you lost your house to the bank recently, your score will be very low, making it more difficult to get a high risk house loan. Still, when you're wondering how long after foreclosure can I purchase a home, this is one of the key things to consider. There are so many other things to consider when wondering, how long after foreclosure can I purchase a home, but this one of the most important. It is one of the ways mortgage rates are determined, along with approval.

What have you done since losing your house?

How longer after foreclosure can I purchase a home? Well, it really depends on what you've done since losing your house. If you have gotten back on financial track, you won't need to wait nearly as long. If you've had additional problems pop up on your credit report, you will need to wait a little longer, and make some adjustments. How long after foreclosure can I purchase a home is fairly complex, and you will need to figure out what to tell the bank if they ask you what you have done to correct your money problems.

What has changed?

How long after foreclosure can I purchase a home is tough to answer. What have you done since losing your house to the bank that makes you think you can afford it now? Have you landed a better job? Is your job secure? Has your home business taken off? Did you inherit a large sum of money? All very key questions when trying to determine how long after foreclosure can I purchase a home. In case you are wondering, it is possible to decrease the timeframe when you've had changes that will decrease the likelihood of defaulting.

How much can you put down?

If you have a sizable down payment, you may not need to wait as long. How long after foreclosure can I purchase a home will depend, at least to some degree, on how much you can afford to put down. Banks look at something called loan to value ratio on house loans, and other types of loans. If the value is much greater than the amount of the house loan, suddenly how long after foreclosure can I buy home gets quicker. This is good news for those that have lost their houses to the banks, but it's not always feasible to get a large down payment saved. Still, how long after foreclosure can I purchase a home will depend on this. How big of a mortgage can you afford?

Will someone cosign?

If you are comfortable with having someone with good credit cosign the house loan, you may be able to shorten the amount of time you have to wait. How long after foreclosure can I purchase a home has a better answer when someone with good credit will cosign the loan for you. The timeframe can be improved greatly when you have someone cosign for you. There is a down side to this as well, which I'll touch on later.

What rates will you pay?

How long after foreclosure can I purchase a home, and more importantly, can I really afford it? These are important things to consider. You may be able to get a high risk house loan fairly quickly, at least in relative terms, but will you be able to afford the payments that will come with high interest rates? How long after foreclosure can I purchase a home isn't the only question to answer.

How can I shorten the timeframe?

If you are wondering, how long after foreclosure can I purchase a home, then you likely want to make the time shorter. There are some things you can do, that will improve your chances of getting approved for a house loan quicker. How long after foreclosure can I purchase a home will decrease if you follow some fairly simple steps.

1. Improve your credit score. This will be one of the most important things you can do. To speed up the process, you can get a copy of your credit report, and look for inaccuracies to dispute. You may be able to get an almost instant boost in your ranking. Suddenly the question, how long after foreclosure can I purchase a home, has a more consumer friendly answer. A credit dispute letter can help.

2. Save your money. Having a larger down payment will greatly improve your chances of any loan. How long after foreclosure can I purchase a home will depend to some extent on how much money you can put down on the house.

3. Ask someone to cosign, but use caution. This can ruin a relationship. Still, how long after foreclosure can I purchase a home will have an answer you like better when a loved one will cosign the loan.

4. High risk lenders. How long after foreclosure can I purchase a home will depend on what type of lender you choose. High risk lenders will approve you quicker, but you'll pay a higher rate of interest.

As you can see, there are several things to consider when you ask how long after foreclosure can I purchase a home. While there is no perfect answer out there, it's generally not going to happen in a matter of weeks or even month. The truth is, it just may take a few years or longer. Still, for those wondering how long after foreclosure can I purchase a home, there is a light at the end of the tunnel. Good luck as you try to become a new homeowner again.

Advertisement

Comments

Jul 27, 2009 6:35am
christophersmith
Before buying a house, especially after face foreclosure, you need to observe all the details, and anlyze if you really can afford it.
Great post!
Jul 10, 2010 7:12pm
x3xsolxdierx3x
Great article! Thanks, Jason!
Add a new comment - No HTML
You must be logged in and verified to post a comment. Please log in or sign up to comment.

Explore InfoBarrel

Auto Business & Money Entertainment Environment Health History Home & Garden InfoBarrel University Lifestyle Sports Technology Travel & Places
© Copyright 2008 - 2016 by Hinzie Media Inc. Terms of Service Privacy Policy XML Sitemap

Follow IB Entertainment