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Doing the Mortgage Dance6.02.2016

How to Obtain a Mortgage After a Foreclosure

In the Mortgage Lending World… You May be Down, But Not Out


Are you one of the 9.2 million people who have had a foreclosure, lost your home due to short sale, or a deed in lieu? If so, you may be eligible to become a homeowner again. Mortgage Options, Inc. wants you to be prepared before applying for another mortgage. Mortgage Options, Inc. has recently gained access to non-conforming conventional loan programs allowing buyers with a past housing event (foreclosure or short sale) to buy a home without having to wait for the 3-7 years required by Fannie Mae or FHA. 

If you have had a foreclosure or short sale, you may be feeling down, but you are not out of options. There are some steps that can be taken to get another mortgage. After the initial waiting period, the first thing to think about is how the foreclosure or event occurred and how you can correct it or stop it from occurring again. This is the first thing lenders are going to ask. Then work on rebuilding your credit. Mortgage Options, Inc. wants to see you get back on your feet and with the right steps we can help you start doing a mortgage dance. Here are five things you need to know to get you back on your feet again and dancing.

Differentiate between the credit report you will see and the one that Lenders see. Lenders will see a different credit report than you see. Many times the credit report you see is a more condensed version of your actual credit report and can be a few points higher than what your lender will see. Your credit score certainly is important, but it is not the only factor on your credit report that will determine whether you are approved or not.

Acknowledge the fact that lenders will be looking for on-time payment history. Most lenders will be looking for proof that you have paid your bills on-time. A landlord that can say you have paid rent on time every month is a valuable resource for you, the home buyer.

Note that you will need to demonstrate job stability. Try not to make any major job changes or career changes during the time you are applying for loan. You want to be able to demonstrate job stability to the lender.

Continuously keep all necessary documentation. Keeping records of all of your banking transactions can help alleviate a headache when a lender asks for these type of things. Keep a file drawer with any and all documentation a lender might ask for. 

Expect to have many different viewpoints from lenders about your situation. Each lender may look at your particular situation in a different way. This is because of the human aspect in applying for a mortgage. Ultimately someone at a lender’s office will be reviewing all of your documentation. This means that each lending institution may have their own viewpoint about your situation. 

As in any type of dance one must learn, applying for a mortgage after a foreclosure can be simplified by following those 5 basic steps. By following the correct steps Mortgage Options, Inc. can get you back on your feet and dancing about owning a home again. If you have any questions or would like Mortgage Options, Inc. to help secure a mortgage after a foreclosure, please call us at 803-732-5787.