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Because of the foreclosure crisis, lenders Fannie Mae and Freddie Mac have instituted a five-year waiting period for foreclosed homeowners wishing to apply for another mortgage. If you have been foreclosed on but are hoping to someday buy another home, here's how to repair your credit after foreclosure:

• You may qualify for a mortgage sooner with an FHA loan. This is especially true if you purchase a home that was foreclosed by HUD.

• Pull a copy of your credit history from all three credit agencies. The credit agencies are: Equifax, Experian, and Trans Union. You can request your credit history from their websites. You are entitled to one free credit report per year from each agency. You can get all three through the Annual Credit Report website. Once you have all three credit reports, make sure all information is accurate. File a dispute regarding any errors with the agency that is reporting the error.

• Make a financial plan and budget. Visit the Financial Planning Association website for online assistance. You could also use software such as Quicken to help you create your budget and financial plan.

• If you have other debts that you are struggling to pay, you may want to consider debt counseling, debt settlement, or bankruptcy in order to make your payments more affordable or eliminate them altogether. A financial planner or debt counselor can help you decide which option is best.

• Begin paying everything on time every time. This will show prospective lenders that you are responsible about your finances.

• Try to pay down your other debt as quickly as possible. If you can, double your payments each month.

• Once you have your current debts under control, you may be able to get approved for new credit. You may be charged a higher interest rate, but you will have a good account reported to the credit agencies. Remember to use your new credit wisely and pay your bills on time.

If you have a foreclosure in your past and would like to buy a new home, contact Rachel Valentino for advice on how to purchase a home after foreclosure and get an affordable mortgage.

Rachel Valentino is your professional real estate agent in the Washington, DC area. If you are buying or selling a home in the DC-area contact Rachel Valentino and her team of DC-area real estate experts.