Can I Still Get a Mortgage if I Have Been Foreclosed in the Past?

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Getting foreclosed can be a real nightmare for most people, and may have you worried about ever being able to own property again. you might expect no lenders to ever trust you to make your payments. You may fear even struggling to find a place to rent if landlords believe you are too risky of a tenant. But, do not be alarmed. It is possible for people who have been foreclosed on their homes in the past to still get a mortgage and become a homeowner again. It will simply take a lot of patience and hard work to get your finances back on track. We will share with you the best ways of getting back into the mortgage game if you have been foreclosed in the past.

Keep Your Job

This first piece of advice may be a hard pill to swallow for any of you reading this who hate their current job, but maintaining a solid source of income is going to be crucial for you to get a mortgage again in the future. The longer that your employment history is, the more likely you will be looked upon favorably by a lender for getting a mortgage. This is because a reliable source of income will help convince lenders that you are stable and will be able to make payments.

Rebuild Your Credit

Things like bankruptcy and foreclosure are going to cause a lot of damage to your current credit score. However, the important thing to remember is that these damages will be reduced over time, making it possible for you to rebuild your credit back up to a good rating that will be deemed acceptable by lenders.

In order to rebuild your credit you should make sure to always pay your bills on time. You should also ensure that you are not using more credit than there is available to you. Pay off whatever debts you have and pay your credit card balances in full every month. If you are finding it difficult to keep your debt down then try to cut out as many costs in your life as you possibly can.

Prepare to Apply for a Mortgage

If you have made it through whatever waiting period is necessary and reestablished good credit the next step will be to start prepare to apply for a mortgage again.

The first step is to try and save as much money as possible for a substantial deposit. This deposit should be anywhere from 10pc to 20pc of the value of the home that you desire. Because you have been foreclosed in the past, you need to be ready for a higher interest rate on whatever mortgage you get. This will affect how much you can afford to pay in monthly outgoings. But, this should be okay, since you should probably try and get a smaller mortgage first since you had trouble making payments in the past.

The final thing you may want to keep in mind is that you lender may ask for a co-signer because of your past. Find a friend or relative you think you can trust to be responsible for your payments if you are unable to make them yourself.