Buying A House After Foreclosure – 5 Secrets To Get Good Mortgage Rates!
1. A Bigger Down Payment- Buying a house after foreclosure usually means outrageous mortgage interest rates, but one of the biggest secrets to getting a good rate is to put down a larger down payment amount. There are free foreclosure listings websites that can help with lower costs, and a larger down payment will usually mean a lower interest rate as well.
2. Rebuild Your Credit Score and History- If buying a house after foreclosure is the goal then rebuilding your credit score can have a big impact on the interest rate that you will pay. Avoiding foreclosure is the best option, but this is not a possibility for some consumers. If you have been foreclosed on then you should rebuild your credit as soon as possible to qualify for lower rates.
3. Use Credit Sparingly and as Little as Possible- Your credit is one of the most important steps to buying a house, and if you have been through foreclosure then you should be cautious about using credit. Using credit will affect the interest rate you will pay for a mortgage, so you should not use credit unless absolutely necessary.
4. Time Can Heal the Damage- Immediately buying a house after foreclosure is not usually advised, because it can take from two to four years or even longer to qualify for another loan. With time and careful credit management you can get access to lower mortgage rates though. Some credit card companies will offer secured cards that help you rebuild credit, and after using these cards for a period of time lower rates are normally possible.
5. Pay All Bills Before They are Due- If you are interested in buying a house after foreclosure and you want to get the best possible mortgage rates then paying your bills before they are due can be a secret weapon. There are mortgage loans with bad credit, but these products include much higher interest rates most of the time. Late payments can lower your credit score significantly, and paying bills before the due date will help raise this score instead.