Have you experienced buying a home a few years ago, only to lose it to a foreclosure? It was probably a hard pill to swallow–to lose an investment you so wanted for years. Now, however, you’ve learned your lesson and are better prepared to invest in one of the promising residential lots for sale in Cape Coral.
Buyers with the same experience as yourself are known in the real estate industry as a “boomerang buyer”, or one who has lost a home due to a foreclosure and is now ready to start over by buying a new property. Real estate agents recognize that you’ve been through a difficult time in the past few years, trying to keep the home that you’ve purchased. It may be comforting to note that the Cape Coral-Fort Myers area is the second most eyed location by boomerang buyers, which would imply that it offers plenty of opportunities for a good deal.
Buying a new property after foreclosure, however, takes on a different dimension, as there are a few more factors that can affect your eligibility for a loan and a purchase.
Most lenders would probably adhere to the three-year waiting period imposed by the Federal Housing Administration before granting you a new loan. However, guidelines might vary among different lenders. The best way to ensure that you’re eligible to obtain a new loan is to wait this period out, which starts when the foreclosure is completed.
Fixing your Credit
The foreclosure of your home might have taken a toll on your credit score. In the absence of other credit history issues, however, a dip in your credit score due to foreclosure is one of the easiest to fix. You can use the waiting period to fix your credit by establishing a history of on-time bills payment. A foreclosure can remain on a credit report for seven years, although its negative impact gradually decreases as time goes by.
Down Payments and Pre-Approval
Some boomerang buyers might not know that a new residential land for sale now requires a down payment. This is something that you need to prepare for. Moreover, it is best to be pre-approved by your lender before you buy a new property, as this better assures the seller of your ability to pay.
Buying a new property after losing the first may be daunting, but keep in mind that a rebound is always possible with the right attitude. Beautiful Cape Coral properties, such as those on the listings of Cape Coral Lots, can be the key to a brighter life ahead.
(Source: 6 Tips for Boomerang Buyers of Homes, Fox Business)