If you lost your home through foreclosure or was sold as a short Sale in 2009 or earlier, it may be time for you to re-enter the market now that the waiting period has elapsed. In Texas the waiting period is 3 years after a short sale or foreclosure to qualify for an FHA mortgage loan and buy an Austin home. Lenders call this the “seasoning period.”
Why Buy? Mortgage Rates Have Dropped Below Historic Lows
This is really great news because mortgage rates have dropped — about .5% in 2012 from already historically low numbers. Buy a home now and take advantage of an interest rate that is probably lower than the rate on your previous loan and you can buy at the near-bottom of the market.
Step 1: Heal Your Credit
First, you must have re-established good credit without any late payments (late defined as 30 days past due). Have you been paying your credit cards, car payments and rent on time? Are your student loans current? Do you have any past judgments, child support or alimony? Have you paid those on time? Paying your bills on time will slowly raise your credit score.
Step 2: Get Pre-Approved
The process is about the same as last time, but it might take longer if there are errors or discrepancies on your credit reports. Your credit and employment history will be verified closely, and some lenders may take into consideration the economic climate at the time of the short sale or foreclosure. This may not be true with every lender or loan program, but credit requirements have become more stringent. If you’ve taken the time to rebuild your credit, it may not be that difficult to get pre-approved for a loan.
Tip: Find a reputable mortgage lender who is willing to spend the time necessary to put together a loan package that demonstrates your new credit worthiness. We can recommend a great Austin mortgage broker who has experience working with people who have had foreclosures and short sales in the past.
Step 3: Work with an Experienced Buyer’s Agent
The Realtor you choose to work with have a great impact on the success or failure of your quest to buy a home. Of course, you want your Realtor to help with find the most suitable home for you and your family and negotiate the lowest price possible…that’s a given. A top-notch Buyer’s Agent will also act as a guide helping you avoid the potholes that may pop up along the way, and there will probably be pot holes.
Step 4: Stop Paying Your Landlord’s Mortgage
You can buy another home and stop paying your landlord’s mortgage. With planning, preparation and follow-through you can again own your own home after a foreclosure.
Ready to Buy Again After Foreclosure or Short Sale?
We can help show you how to buy after foreclosure or short sale. We have more than 50 years of combined experience in representing home buyers in every type of market, in all price ranges. Check out our Austin Home Buyer Representation Program to learn how we’re different. Then, give us a call at (512) 827-8323 or email us at info@11OaksRealty.com and learn how we can help you become an Austin home owner again.