Do mortgage companies approve new loans with past foreclosures?
Question:
Answer:
Hello Lori -
The lenders will want to see between a 24-36 month clean history since the foreclosure.
Make certain before you seek pre-approval or allow anyone to pull your credit, that you bring your credit card balances under 30%. For example if you had a $1,000 credit limit, pay it down so you only owe $300.
You also will want to have 3 months PITI which is simply 3 months worth of mortgage payments and taxes sitting in a saving or checking account. This you will want to be in your account for 60 days before applying for a mortgage.
Unless you have a retirement account which has a balance. The lenders normally will consider 75% of the total amount in a retirement account.
If you are a W-2 employee, that will help, although selfemployed will also work.
Please let me know if you have any other questions.
Kindest Regards,
Darren Meade
Yes, you just have to find the right lender.
yes. you just need to give them some time... my parent's went bankrupt and got their house forclosed on when I was 14 and got another mortgage when I was 20...
Sure - if you are willing to pay MEGA MEGA in terest rates
Not often. Need to be a LONG time back, lots of good credit in the meantime, decent job and risk and a good down payment and you have a shot; if you have a good reason for it and you didn't leave anyone holding any outstanding debit
Yes, many of them do ... however, your interest rate will be higher after a bankruptcy or foreclosure.
Here's some online information about getting a mortgage after going through a foreclosure:
http://www.thinkglink.com/getting_a_new_...
It will not be easy to find one unless you have a big down payments.
Yes. Anything less than 2 years, and you're going to be paying significantly higher rates though. After that, it starts to open up somewhat. After 4 years, you should be able to get almost any normal conventional loan.
Provided, of course, that since the foreclosure, you have reestablished a good credit history on your normal credit card/car loan accounts, and have a SPOTLESS payment history on your rent. It's best to pay your rent with a check every month, so you can track those checks down if necessary to prove without a doubt that you paid on time (never more than 30 days late).
Yes they do. The traditional guidelines ask that the Foreclosure is over 4 years old however there are more lenient lenders that allow for people to get approved even if they have just got out of foreclosure. Foreclosure is a housing history issue: if you have rent/mortgage checks that have been consistent since the foreclosure then you are re-establishing this housing history. The question really is, what are you comfortable paying for rate/fee wise?
It is hard to do, but not impossible. Contact me whenever you are available, and we'll give it a try!
513-860-2940 ext 10
msmith@premeirloangroup.com
yes they will see your past record and then give you the fresh ones
Yes, they will consider your overall credit and income situation, including the foreclosure. The main determinant will definitely be how far back the foreclosure was. If it's within a year or two, you may have a difficult time getting a new loan. If the foreclosure occurred more than two years ago, and your credit is in better shape now, you may end up with a higher down payment and rate, but you will be approved for the loan.
Don't expect to get any great deals like a no down payment loan, or a stated income loan, unless you've done a lot of credit repair since the hardship that caused you to face foreclosure. Apply for the loan and have a down payment in the bank, and make sure you are purchasing a home that you can afford. Try to avoid Adjustable Rate Mortgages with payments that will go way up in a few years, as this indicates purchasing too much home with too little income.
Just have reasonable expectations about the rate, and don't expect to get a loan for the entire amount of the house -- invest in your new property and have a down payment ready to go. That way, you'll have more of a cushion to refinance if you get into a bad situation again.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
More Related Questions & Answers...