WABROKER

Posts Tagged ‘plan to stop foreclosure’

You may have made a plan to stop home foreclosure with a loan modification or short sale.
But if you have recently lost your home to foreclosure, you may wonder how best to become a homeowner again.
Deed in lieu of foreclosure, short sale and foreclosure will have different implications for your savings account and credit score–foreclosure affecting your score the worst.

Your credit score and ability to save for a down payment are two factors which will affect how soon you will be able to purchase property.

A mid-score of 620 is the minimum score required to qualify for a government loan.
Your credit report will give you your credit score as well as display the items which are negatively affecting your score.
You should check the report for accuracy and dispute any outdated or inaccurate items with your credit agency.
Often you can settle debts with your credit agency for less than you owe.

In addition to fixing your credit score, you should begin saving for a down payment as soon as possible.
With government insured loans, it has been the standard to require 3% of the purchase price as the down payment.
However, FHA loans now require that a buyer puts down 5% of the purchase price, so buyers will need to save even more.

If you have recently lost your house, it is important that you raise your credit score and save for a down payment simultaneously.
One way to do so is to open a secured positive trade line to show lenders you are responsible with your money and debts.

Knowing what you need to do now will help you qualify for a loan faster.
With attention to your credit score and savings for a down payment, you can be a homeowner sooner.