The past few years have been an absolute nightmare on many people’s finances and investments. Literally thousands of people lost their homes through foreclosure. And, as everyone knows, a foreclosure is a huge black mark on your credit scores. But, it is not as bad as it seems in today’s market. Some lenders are realizing that they may have to take other things into consideration when approving mortgage applications in the post crisis world. No longer are there a lot of people with good credit scores.
Some of the things being reconsidered are job loss, death or disability of a primary wage earner and other instances. Because so many lost jobs at the same time, lenders are now approving loans based on that information as unforeseen. If you had been paying regularly all the time before the economic crisis, you will stand a very good chance of being able to buy another home.
In addition, if you have some cash to put down, such as 20% or more, the lenders will take a closer look at you. One of the things that have helped many is to take out small loans and pay them back within 30 days to avoid paying interest and then this shows on your credit scores as paying a loan off early. This is a really good boost to your credit score in a small amount of time. For instance, when you know you are going to be getting a tax refund in March, visit a lender. Explain what you are trying to do and that you will be paying the loan back within 30 days. Lenders like this idea and will be more apt to work with you. As soon as you get your tax refund, pay the loan off. Alternatively, explain the same thing, but when you get the cash, put it in savings for a couple of weeks and then pay the loan off with the very same money. And it has not cost you a penny.
As you can see, all is not lost in today’s world. You just have to be a little more creative than in the past. Think about what is best for you and your family. You will be owning your own home again in no time. Visit with several real estate agents to find the right home with the right terms for you.