During the past five years many families have lost their homes to foreclosure but now a recovery is underway these same families are looking into the process of qualifying for a mortgage. They are being termed as "boomerang buyers."
Scott Schang from Broadview Mortgage has put together a report on the three most important things foreclosure victims should be aware of before trying to purchase another property.
In a discussion on YouTube, he points out that anyone wishing to qualify for a mortgage is going to need very specific documentation, and that they'll need to research the foreclosure. This is something that many people may find difficult to do, but it is necessary. They need to find out the exact date the grant deed was transferred out of their name into the banks as this will be the date that the current mortgage guidelines use for qualifying. This means that even if someone moved out of their home months before the grant deed was transferred then they are not eligible to count this time.
Scott feels the second most important thing is that people must be honest about their finances. Many have no idea about the need for a down payment, and having a clear understanding of their financial position is essential for realistic expectations. He advises people to go to a loan officer or a financial advisor if they're not sure what they need to look for.
The third most important thing is to assume they don't qualify, and that anyone visiting a loan officer should view it as being a process for qualification. While they won't walk away with a pre-approval letter in their hand, they will gain a clearer view of what they might be able to qualify for, and the steps that need to be taken to qualify for a mortgage.
At the moment interest rates are still at a historic low, and a lot is being made of this fact by the news pundits. Regardless of whether or not interest rates alone, mortgage payments still have to be made each month, and while the opportunities are out there for boomerang buyers it all depends on how well they have prepared for mortgage qualification.
Anyone interested in further information on purchasing after a foreclosure can contact Scott Schang on 714-244-7368. You can read the full article by clicking here.