Don’t Let a Short Sale Keep You From a New Mortgage | Consumer Information.
July 26, 2013
If you negotiated a short sale of your home, you may be surprised to learn that some mortgage loan underwriting systems can’t distinguish short sales from foreclosures on consumer reports. And that may keep or delay you from getting a new mortgage.
You see, borrowers who go through a foreclosure typically have to wait seven years before they’re eligible for a new mortgage. But short sellers may qualify in as little as two years. When you’re trying to buy a new home, an additional five years can seem like a lifetime. So is there anything you can do to improve your financial footing? You bet there is.
- Get a letter from your lender confirming that your loan closed in a short sale, not a foreclosure. Send a copy of the letter to each of the nationwide credit reporting companies: Equifax, Experian, and TransUnion.
- Order a copy of your credit report. Make sure the information is accurate. If you find a mistake, contact the credit reporting company and business providing the information to correct the error.
- When you’re ready to buy another home, get pre-approved for a loan. A pre-approval letter from a lender shows that you are able to go through with a purchase. Pre-approval is not a final loan commitment; it means you met with a loan officer, your credit report was reviewed, and the lender believes you can qualify for a specific loan amount. This pre-approval process allows your lender to identify issues and errors in your credit report that may keep you from qualifying for a loan. That, in turn, allows you to correct inaccuracies before they can prevent you from buying another home.
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FHA cuts waiting time for those who lost homes to foreclosure
FHA cuts waiting time for those who lost homes to foreclosure
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Posted by joel lobb at 10:10 AM 0 comments
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Louisville Kentucky FHA cuts waiting time for those who lost homes to foreclosure, short sales,
Short Sale and Kentucky Mortgage Requirements for a Home Loan
The Guaranteed Home Loan Program provides a guarantee to private lenders who make the mortgage loan. The program provides 100 percent financing and works well in concert with other programs, such as Nevada Rural Housing Authority’s mortgage credit certificate, or 4 percent down payment assistance program.
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