Even if you went through a short sale
We understand and sympathize with all the homeowners who struggled through the recent tough economic and housing conditions. Millions of hard-working people lost jobs, saw their good credit ratings suffer, went through a short sale, or filed for bankruptcy.
If you’re one of those folks, take heart. People who would like to try and get back into the market should find it a bit easier now. More lenders are relaxing their credit standards, and mortgage interest rates continue to be very low, reports the Mortgage Bankers Association.
Short sales may no longer be an impediment for you to get a new home loan; in fact, given certain circumstances, you could be eligible just one year after your short sale. If you’d like to buy a home, but are, understandably, apprehensive because of what you went through before, here are 8 tips that can help improve your loan eligibility after a short sale or other financial setback:
- Steadily pay off all your bills, on time. This will improve your credit score over time.
- Aim for a credit score of at least 620. Make sure your credit record is accurate by requesting a copy of your credit report. Correct mistakes right away with credit reporting agencies.
- Be a financially conservative money manager so you accumulate a healthy down payment. Save as much money as possible by eliminating unnecessary expenses (for example, eating out frequently, purchasing new TVs or appliances).
- Keep a steady job income so you more easily qualify for a new loan.
- Don’t sign up for new loans, such as car loans or credit card payments.
- Find out the required waiting period after your short sale by determining when the mortgage insurance claim was paid on your prior mortgage following the short sale.
- Pay cash whenever possible so you don’t continue to accumulate debt.
- Consider getting homeownership counseling; if you want to apply for an FHA back-to-work program loan, then counseling is required.
When you’re ready to buy a home, we’re ready to help, using our experience, passion and integrity so you find the right home at the right financing. How can we help you achieve your home ownership dreams?