Category Archives: Financing

Avoid These During the Mortgage Process

1. Make large undocumented bank deposits
2. Fail to disclose you are on probation, disability or maternity leave with your employer
3. Close credit accounts with a zero balance
4. Co-sign a loan for anyone else
5. Change your job status from full to part time
6. Spend your down payment or closing cost money
7. Apply for new loans or credit
8. Stop paying your bills on time
9. Get married or divorced
10. Quit your job

Recover from a Foreclosure or Short Sale

If you lost your home due to a foreclosure or short sale, you probably would like to own a home once again. The good news is that a number of guidelines have changed which may allow you an opportunity to buy a new home sooner than you think.

The traditional waiting period after a foreclosure is seven years. However; these waiting period guidelines may change and you would be best served to get up to date information from a qualified mortgage professional. Many lenders will shorten the waiting period some if there were extenuating circumstances surrounding the foreclosure of your home. Was there a death or illness that prevented you from earning enough money to meet your mortgage obligations? Did you loose your job or incur a substantial pay cut for some reason? These and similar reasons might be enough for a lender to shorten your waiting period after a foreclosure.

Your credit is often re-established quicker after a short sale than a foreclosure. Generally lenders will require only a two-year waiting period before they will consider you for another mortgage. Once again; seek the advice of a licensed mortgage professional to obtain the latest information on their qualifying guidelines.