Purchasing another home after going through a past, or even recent, foreclosure is easier than most people think. A lot of previous homeowners think that with their credit rating, and foreclosure history, mortgage lenders will deny them. However, a lot of mortgage lenders have specific home mortgages and loans available to people with bad credit.

Methods which will Improve your Credit Score... FAST!
After going through a foreclosure, rebuilding your credit should take top priority. If you can get a mortgage loan and make your payments on time for a year, your credit rating will improve dramatically. Even if it is not possible to obtain a low interest rate for a home after a foreclosure, making payments on time and improving your credit, even a little, will allow you to refinance in the future into a lower mortgage interest rate.
The best way to get a lower rate from the start would be to make a serious effort at repairing your credit rating before applying for that new home mortgage. A good but risky method of quickly obtaining credit is to get credit cards, both secured and unsecured, as well as department store cards, and the like and consistently make those payments on time and for a little more than the minimum that is due. This will help prove your credit worthiness and raise your credit rating and profile.

Choosing the Correct Mortgage Lender
It is very important you choose the right mortgage lender when attempting to finance a new house. A lot of times, home buyers do not search around for the best mortgage lender. Even more do not consider using the services of other financing sources such as sub prime mortgage lenders or mortgage brokers. Receiving a good rate while having bad credit or a prior foreclosure will not usually ever happen with a traditional type of mortgage lender or bank. These money lenders prefer to cater to prime candidates. The lower your credit score is the more likely they see you as a threat of foreclosure and mortgage default. Therefore, a typical applicant applying for a home with bad credit or a past foreclosure is bombarded with unusually high fees and interest rates.

Start with using the services of a sub prime mortgage broker. Typically they have the connections and knowledge about where to get a home loan for any type of credit rating. Although they charge a percentage it is usually well worth it as the rate they get for you will usually be much lower than the rate you can get for yourself.

-M Petrone

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