After A Short Sale

crystalsloan · Joined: 25 Apr 2008 Posts: 1 1.69 Dollars($)

Hello everyone. I just got approved for a short sale on my home. Now my question for all the experts out there is what do I need to do to be ready to buy a home in say 2 or 3 years. My first house purchase was done the wrong way, i.e. high interest rate, no money down. The 2nd time around I want to do everything RIGHT. I would love to be able to go through FHA to get a nice low interest rate. So any suggestions, or personal stories you have would be greatly appreciated. I'm ready to get this credit cleaned up and save money so I can get on the right track! Thanks in advance. This board is GREAT!!!

Niicss · Joined: 03 Oct 2005 Posts: 807 118.37 Dollars($)

Welcome crystalsloan,

You are going for short sale. So it will not affect you credit a lot. It will only drop 60 to 100 points. So you may get approve within one and half year now on for a new mortgage. So try to improve your credit and at the same time save money for the down payments. Pay all your debts on time. That will help you to improve score.

Let me know if you have any further questions.

gmakerley · Posted: Fri Apr 25, 2008 7:43 am Post subject:

hi crystal - undoubtedly you've learned many of the things not to do in making a purchase. some of the other things that you will want to do are as follows:

save as much as you can in the coming months - a down payment will stand you in good stead, no matter what the guidelines may become. don't count on there being 100% financing again - as of the moment, those deals have pretty much disappeared.

with fha loans, you will be able to borrow at 97% of the value - still a very good deal.

you'll, of course, want to maintain your credit standing as well as possible. some hints - keep your balances at or below 30% of your credit limits. this is one of the factors that is used in developing scores.

also, of course, pay your bills on time - this goes without saying, but it truly cannot be reiterated too much. far too many people have sloppy payment habits - don't join them. another - don't go shopping for credit too often; the more inquiries that appear on your file, the longer it will take to establish excellent credit.

once a person takes pains to repair any old, poor credit and to ensure that all payments are made on a timely basis, it doesn't really take a great deal of time to increase scores.

you've mentioned 2-3 years. that's probably a good idea, inasmuch as it'll give you the opportunity to save a few extra dollars while at the same time cleaning up your credit files.

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