Prepare yourself to buy a home again

Home is where the heart is, and with millions of Americans losing their homes these days, many are wondering if they’ll ever realize the joys and benefits of homeownership again. With foreclosure, short sales and bankruptcy increasing, I’m frequently asked how long one must wait to buy again.

The short, simple answer is that you can buy a home as your primary residence three years from the date the major credit event is completed. It’s also worth noting that it’s possible to buy with a mere 3.5% down payment! Zero down payment is offered in Nevada County and through VA financing.

So what does that mean for you? It means that the major event of losing your home won’t keep you out of the home-buying market forever. It also means that preparing for that day is important. Getting ready is key!

1) Document everything that caused the event to happen. Loss of a job, major medical situations, death of a loved one and other extenuating circumstances are used for consideration in the loan process. The more information you can log and document, the better. We like big files!

2) Stay on top of the timing and process of the event. If you moved out of your home before it is officially foreclosed, make sure you find out the finalized date. This is when your wait time begins. A word of advice if you move out prior to the foreclosed date – you are still liable for anything that happens at the house. Keep up your homeowner’s insurance. You’ll get good points for this.

3) Start today to rebuild your credit score. Have a minimum of two new credit accounts that are all paid on time. Your credit is only temporarily broken – it can rebound in a short period of time.

You can become a happy homeowner again, and it is our job and desire to make this happen. Three easy steps toward a three-year goal. Let’s do it together!