So, the dust has settled on that foreclosure or short sale and you are ready to become a homeowner again and purchase a home in the Scottsdale area. Here are some major do’s and don’ts for the prospective borrower to consider:
Applying for a mortgage after a short sale or foreclosure
Do:
- Do realize that mortgage guidelines have loosened nationally based on low interest rates and the recent rise in home sales.
- Do contact your Realtor with your intent to purchase prior to initiating any loan paperwork.
- Do the necessary research in the selection of a loan officer and contact them early in the home search process (The Matheson Team is a great source for lender recommendations in the Scottsdale area.)
- Do understand the published waiting periods to purchase after a foreclosure or short sale vary from lender to lender.
- Do stay current on all existing accounts since late payments are reported to a credit reporting agency.
- Do continue to use your credit as you normally would.
Don’t:
- Don’t assume the information used with the purchase of your last home still applies.
- Don’t paint the process dismal and tedious as lenders have begun to work with buyers in a more lenient and flexible manner.
- Don’t consolidate multiple credit cards to one credit card or close credit card accounts without the approval of your loan officer.
- Don’t make any changes in your financial snap shot by transferring monies or by closing and opening accounts without consulting your loan officer.
- Don’t make changes with your employment or income since stability is a big factor in the underwriting process.
Your loan officer will provide you with a comprehensive “do and don’t” list to successfully complete the purchase of your new home.
However, there is one last important thing to do: Do make The Matheson Team and AZGolfHomes your resource for real estate information for the Scottsdale area.
Reach out to us for more information.
Don Matheson
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255
480-405-4228
[email protected]
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