Tag Archives: mortgage home loans

Do You Understand How A Short Sale Will Influence Your Ability In Purchasing Another Home

There is alot happening within the realm of real estate every where not just in the Santa Maria real estate market and that holds true with just about all the mortgage home loans having to go  bad, and unless you have been existing under a rock then you ought be some what familiar with the expression short sale which has come to be as familiar as the word foreclosure.   Quite a bit of of you that live in either a house or condo regardless of whether or not you own it or not, you have had reminders left on your building, that there are a whole lot of people eager to accommodate to do a short sale and that it is much better for someone to do than it is a foreclosure, (I have left a few myself on a few doors).  For those that do not know what a short sale is, which is basically when a homeowner sells his place for less that what he currently owes.  now there are some benefits to doing a short sale, first one is when do you need to be a homeowner again?

Supposing that you may be able to compel your lender to allow you to do a short sale even if you have not missed any payments.  Then FHA will allow you to acquire another home the next day, as long as the home you are acquiring is not at all superior to the home you now have.   The challenging  part will be getting your lender to let you to do the short sale, a lender may refuse to allow you to do a short sale, as stated before this is the difficult part procuring the approval when you have not missed a payment and a short sale transaction normally takes months to close.  Assuming that you do miss payments and you do a short sale, FHA guidelines now state that you have to wait at least 3 years, before you could purchase another home provided that you were to try to acquire a FHA loan.  This is where carrying out a short sale and just letting your place go to foreclosure genuinely does not at all make a difference in you getting financing again.  Now the 3 years is from the date of closing not at all from the date you stopped making payments or the time you initiated the process towards your short sale or foreclosure.

But now moving on to other loans outside of simply an FHA there are a few differences when it comes to obtaining a loan other than a govt. loan, and doing a conventional loan.  Currently Freddie Mac and Fannnie Mae are the two largest investors at this time.  These two humongous govt. sponsored corporations acquire pretty much all the mortgages out there that the banks are now doing, reality is that most of the homes in Santa Maria are being done via FHA.   With the condition that you do a short sale and from the date of closing your transaction your waiting period is merely 2 years to buy another house.   In any event please keep in mind if you are on a separate loan whether it is investment property or you co-signed on it, there can be no mortgage lates within the 12 months of application.   With the condition that you foreclose then the waiting period is 5 years from the date of your foreclosure date.  That is a huge difference in regards to getting back in the market in addition to becoming eligible to obtaining sponsorship and becoming a homeowner again.  Then it depends on credit, what is your credit going to be, its a fact that after doing a short sale or foreclosure you will be dealing with bad credit but its only temporary???

Keep in mind houses are so very much less now and I seriously doubt they will be doubling in 2-3 years time in essence if the house is unaffordable now you can be in a preferable financial position in 2-3 years in addition to with less stress.   In closing on the assumption that you find yourself in a position of conceivably having to do a short sale or losing your house you are not alone and for many when taking their finances into consideration a number of  homeowners have come to learn after some time that it could be a blessing in disguise.

2004 acura tl
sephora coupon code
laguna beach ca
native american culture
american express online

Bookmark and Share

Not Everyone Should Buy A Home

Santa Maria real estate has changed dramatically and getting approved for a mortgage home loan has changed as well.  If you would have came to me about 3-5 years ago with that question, on getting approved for a home.  I would not have hesitated to tell you, lets find you the house you want and get an offer written. We would have sat down at the office and followed a buyer process that dealt with various steps toward home ownership.

Once we had a few questions answered and out of the way on what you wanted and were looking for, and could afford, we would search MLS and look around the town for the Santa Maria homes for sale that would suit your desires. It would be nothing to line up 20-30 houses and then trimming them down to 10 or so, and then getting serious and looking at 5 of them closely.

Once you had picked what you wanted, we could write an offer to the owner and start on the money negotiations with the listing agent, so that we could try to the best of our abilities to ensure that both parties walked of of the situation happy with the result. Not even a thought about financing in this scenario. Just going right along with the confidence that that we can get financing because then it would not have been a problem. Credit score at 580 no problem. That would be a low score that would get you nothing in today’s lending world.  The reality is times have changed you really need to qualify for a home loan.  I get so many people that still live in yesterday’s world on how their brother or uncle bought a home.  Times for qualifying for a home loan really have changed even more so for those that are self employed since their income is always fluctuating and at the same time they tend to hide alot of their income as well.   Today’s world you have to show that you have funds and the ability to buy a home forget about all that stated income stuff.  You will have to also show where is the money coming from when you are making a down payment, days of fly by night and get you in a home are done.

It was a nice idea trying to make it possible for everyone to have a home. It’s sad to say that not everyone should have a home, because many people just cannot manage their finaces the way they should. Now I drive around seeing real estate signs, window decals, and yard signs claiming that the house is forclosed and for auction, just adding to the Santa Maria homes for sale because too many live above their means. This is a drawback of living in a material world. Wanting more than what you can afford, but some never learn.  and that is just the way of life .

So when it comes time to make the leap from being a renter to a homeowner do realize that there will be alot asked of you such to insure that you can make the payments and afford the home.  Best thing to do is start from the begining and the most easiest step is what is your credit like,this has really been the biggest issue for me in trying to get someone into a home.  Believe it or not it has not been income but their credt.  So find out what’s on their and then work on getting it fixed to qualify for a home.

Second is choosing the payment that you can make and is affordable for you month in and month out without having to get a bunch of room mates.  Last but not least is just getting your finances or budget in order and saving up for that down payment for your new home.  If you happen to have any questions just let me know. 😉

Bookmark and Share