If you’ve previously completed a short sale or deed in lieu and you’re finally able to purchase a home again, there’s an important change you need to be aware of that may impact how seriously you’re taking your current home search. On August 16th, there will be updates made to the automated loan approval system that lenders are required to use that could directly affect you and your desire to purchase a home again.
So, what can you expect from these updates and how will they impact you? First, the most important thing to know is that your loan needs to be approved and ready to close before August 16th; if not, the purchase of your home could be threatened because you’ll be required to follow the new guidelines of the loan approval system. Some of the main updates to the loan approval system are as follows:
1. If you’ve previously completed a short sale or deed in lieu the waiting period to purchase a home again is increasing to four years instead of just two.
2. Mortgage tradelines in a Charge Off status will also have to wait four years from when the Charge Off took place.
3. With regards to extenuating circumstances, there are also additional changes however buyers shouldn’t assume they’ll qualify for them; instead, buyers should just assume that the wait to purchase a home again will be four years.
If your current two year waiting period after a short sale, deed in lieu or mortgage tradeoff has expired, the time to act on buying a home again is now. While it may seem like you’ve got plenty of time, the clock is ticking. It is imperative that your loan be finalized by August 15th to avoid having to follow the new guidelines of the loan approval system and waiting an extra two years to purchase. To get preapproved and to find yourself a home before this date, contact Wells Realty and Law Groups today.