By Jennifer Srock
- Maintain employment and avoid any gaps between jobs. You will need to show current employment of 24 consecutive months within the time of your purchase.
- Make sure all of your debts are paid on time with no late payments for at least 24 months.
- Pay all debts down to 30% or less of the max limit.
- Pay off all collections, liens, and judgments.
- Clear off all disputes on your credit.
- Do not establish new credit such as a new car loan or credit card for a department store or furniture store. Don’t try qualifying for any purchase on credit until after you have the keys to your new home.
- Maintain your positive credit history. Do not close any accounts in positive standing.
- If paying rent, do not pay with cash. Pay on time with checks so you have documentation showing a viable rental history of paying in full on time.
- Save as much money as possible for your down payment and closing costs.
- Consider joining a credit monitoring service so you can track the improvement of your credit.
It is true that you may be able to qualify for a mortgage loan within 2 years of having a short sale on a loan other than FHA? However, what you don’t hear is that the qualification will require you to have a significant down payment of at least 20%. Otherwise, you will need to wait longer. Rather than spelling out all the possibilities, I recommend you speak to a mortgage lender about your specific situation rather than relying on generalized information.
I also highly recommend speaking with Cheryl Barber at Nova Home Loans. You can reach her at 520-836-7000 or Cheryl.Barber@NovaHomeLoans.com.
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