Get Home Loan After Short Sale | Buying a House After Foreclosure
There are many people who look after home loan after selling their house. Thus, in this article we will discuss about the information which will help you to Get Home Loan After Short Sale. Hence, in order to know what you can do to get the home loan you just need to follow this process.
What is a short sale?
A short sale is a sale of home under which the proceed are sufficient in order to repay all the mortgages balances against the property. In any case when there are only one lien holder on the property like a first as well as a second mortgage. It is very important that all the lien holders should agree to be accepted less than the amount owed as payment-in-full. However, the short sale can be better than the foreclosure as doing less damage to your credit score.
Get Home Loan After Short Sale:
There are many people who don’t know what they can do after the short sale process. Thus here we are providing you a detail description about the steps which you can follow after the short sale. Well there are also various different other factors as well which will affect your ability in order to get qualify for the loan. So you are required to be careful as well as alert throughout the whole process because it is also very essential for you to know what you can do after the short sale.
Track your credit:
You must know this that the short sales are generally appear on the basis of your credit score. For this there is also a notation which says “settled for less than full balance.” However, there are various possibilities that the bank will report short sales inaccurately. Thus, it is imperative that your short sales is reporting to the credit bureaus accurately.
Rebuild your credit:
Well if you are willing to restore your credit you need to open a new credit account for a minimum time period of the 4 months. Thus, you need to keep all the accounts open in order or pay them in full each month. However, if you are unable to get gas card or another small credit cards then you must go for the small credit cards. Well the secured credit cards can be the great alternative for the traditional credit cards so you must choose carefully. Secured cards can rebuild your credit if they report your history to the credit bureaus.
Understand your credit score:
However, on the basis of the recent survey, 40% of the consumers do not understand the importance of the credit scores in making the credit decision. however, your credit score is the one of the most important single factor. When you determine your interest rate. Moreover, there are various others number of factors that make your credit score. Such as payment history, age of accounts, types of accounts and number of credit inquiries. Hence, in addition to all of these, it’s important to understand the importance of credit usage. For all revolving credit accounts, you should keep your balances at or below 30 percent of the high limit.
Hence, these are few things you can check and maintain after the short sale. In order to get the home loan.