| May 18, 2012

Purchasing a home after coming back from a foreclosure

Millions of Americans lost their homes to foreclosures, many for reasons beyond their control. With the job market continuing to suffer and consumers weighed down by medical or credit card debt, making mortgage payments became overwhelming for a large segment of Americans. However, many consumers whose homes fell into foreclosure are emerging as new homeowners only a few short years after losing their properties, according to MSNBC.

Current mortgage rates and home prices are at unprecedented lows, making homeownership a more affordable option for consumers. However, individuals who are thinking about taking advantage of the favorable real estate and market conditions after their foreclosure should consider a few factors before submitting an application.

First, it's important to enroll in housing counseling. These services can help home seekers analyze their current finances following their period of hardship to determine how much of a mortgage they can feasibly afford. Most experts agree that consumers should not take on a mortgage whose payments exceed 28 percent of their take-home pay, and counselors may also provide several tools and resources, such as home loan calculators, to help individuals set spending parameters.

Second, securing a mortgage following a foreclosure is far from impossible, but it can be tricky. Lenders want to be assured that homeowners have the income and financial discipline to make regular payments. For this reason, individuals will need to work hard at cleaning up their credit. Paying all bills on time is a necessity as this makes up the largest percentage of a consumer's credit score. In addition, it's crucial to keep debt low. The amount of revolving debt an individual has incurred in relation to their available credit limits makes up the second largest percentage of their scores. For this reason, individuals should focus on paying down credit card balances before applying for a mortgage loan.

Lastly, mortgage applicants who can make a sizable down payment may have a better chance of getting approved for a loan. Working with a professional, such as a credit counselor or financial advisor, can help consumers develop a budget that allows them to build their savings quickly to make a sizable payment on a new home.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

All Consolidated Credit counselors are certified personal financial counselors (CFC) We've helped 5 million people get out of debt! Call us today and see what we can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

The National Industry Standards for Homeownership Education and Counseling are a set of guidelines for quality homeownership and counseling services. Industry professionals who adopt these standards can be trusted to provide consistent, high quality advice.
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Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

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Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Consolidated Credit is proud to be an ANAB accredited member. Accreditation by a recognized and respected body such as ANAB ensures the impartiality and competence of our company. To see what we can do for you, give us a call.

U.S. Department of Housing and Urban Development - HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. Consolidated Credit is proud to be a member of HUD and also part of the Hope Now Alliance.

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