Foreclosure can make it seem impossible to ever buy a house again. The impact of the process can be devastating, long-lasting, and touch your life in a variety of negative ways. While you may believe you are destined to be a renter for the rest of your life, foreclosure doesn’t have to mean that buying your own home is no longer possible. With time and patience, along with perseverance, you can make buying your own home a reality again. By educating yourself as fully as possible about credit and real estate, you’re far more likely to be successful. Read on to discover how to buy a house after going through a foreclosure in San Antonio and start living the dream of homeownership again.
Get Your Credit Report
If you’re hoping to buy a house after going through a foreclosure in San Antonio, you’ll need to take some steps to improve your credit score. One of the first things you should do is get a copy of your credit report and make sure that all the information being reported is accurate. You can also help improve your score by making timely payments on all your debts, including any remaining mortgage payments. Paying down your balances will also help improve your debt-to-income ratio, which is another important factor lenders will consider when determining whether to approve your loan application. By following these tips, you can give yourself the best chance of securing financing for your new home.
Save Your Cash
Because your credit has been so adversely affected, the more you save towards buying a house after going through a foreclosure in San Antonio the better. You may be required to put down more than the standard minimum because of your credit history. You’ll also want to have additional cash on hand to make any repairs or complete work, which often comes along with more affordable housing. If you haven’t yet, make plans to sit down and get serious about working out your budget and sticking to it without fail. Add into your budget saving from three to six months of your income as emergency living expenses. You may just be in for a shock to learn how much is being spent on small expenditures, such as special coffees or eating lunch out of the office every day. Dedicating yourself to your budget in every area of your life in very small ways can make huge differences over the long term and help you in your quest to buy a house.
Improve Your Credit Score
Once you have gone through the process of foreclosure, it will remain on your credit history for seven years. Additionally, there is at least a two year period for VA loans, and at minimum, three years before you would be able to qualify for mortgages from other lenders. You will want to work swiftly, taking any actions within your power during this time to repair your credit score in any way possible. When you do buy a house after going through a foreclosure in San Antonio, you can expect to pay higher interest on the mortgage as well. For this reason, it may be beneficial to buy a property that is at a bargain price and invest some elbow grease equity into your new home.
Regrettably, circumstances in life can bring on changes that are unpredictable and are beyond our control and we are usually forced to live with the consequences. Should the cause of your foreclosure fall under this category, this fact can shorten the waiting period needed for you to qualify for a mortgage. To do so without any waiting period, your situation must meet the guidelines your lender considers as qualifying for the extenuating circumstances exclusion. Likewise, you must be able to show that you have fully recovered financially from the event and that the event is unlikely to occur again should you buy a house in the future.
It’s never a bad idea to have an experienced guide, especially when you’ve done all of the work or repairing your credit and making sacrifices to save, in order to achieve homeownership again. Professional buyers can help you find a house at a discount. Considering the impact of a foreclosure on your credit, the lower the mortgage, the more savings over the long term. You can rely on the network of industry professionals that have been built over time with the best in the business. These professionals work to fulfill your goals and suit your needs, from the initial inspection through closing. Because of such networking, professional buyers have the inside scoop on the best deals in San Antonio.
Why not let a professional buyer, like those at Phil Buys Homes Cash , guide you step by step through the process needed to buy a house? Phil Buys Homes Cash makes it easy to buy a house and save money after going through a foreclosure. Ready to learn more about how to buy a house after foreclosure in San Antonio? Reach out to Phil Buys Homes Cash at (210) 239-8720 today!