Since the housing bubble, there are some Arizonans who are not sure if they could qualify to purchase another home after a foreclosure or a short sale. Well, the answer is yes, in most cases.
There is no denying that there were many home buyers who did not qualify to buy a home during the housing boom a few years back. But greedy bankers approved loans that shouldn’t have been. We have all heard from politicians that the banks got bailed out but not the American people. The blame can be placed on the banks and, many buyers, but the banks have federal banking laws that they are to abide by and many banks broke the laws approving loans that were destined to default.
If your home was sold by either a short sale or foreclosure and it’s been over two years, you may be able and ready to buy another home. If you ended up renting a home, or an apartment, and have paid a minimum of two years on time, now may be the time to own another piece of the American dream, a home. It will be helpful for you to have a letter stating that you have paid your rent on time for the previous two years, or longer, that you can include with other documents when you’re ready to buy another home.
Before you apply for a new home loan there are some credit hurtles that may not be helpful for your purchase, late payments on other loans. If you have paid late on small loans like credit cards that may send a red flag to a loan officer that you may not be a good risk for another home purchase. However, many people have credit that isn’t theirs so be aware of what your credit looks like.
There are lending institutions that have the pulse of the communities they serve, credit unions. Local credit unions take a better look at the people who are seeking home loans and look beyond a credit score and look at the person and not some random numbers that create a, so called, credit score. If any one can explain how the credit scores are created, they are much smarter that those who work for the credit bureaus.
Getting a loan with a credit union, you get to meet the loan officer who you can state your case if you have one or two late payments on your Visa for example. One credit union that has a big stake in Arizona is Desert Schools Credit Union and has many locations state wide. Many times the credit bureaus mis-state the payment history they report on so review your report before applying for a home loan. With a common name like John Rodriguez, there have been several mis-postings on my reports so know your credit and fight for your good credit.
Members of the communities may not know that the credit unions are owned by the members of the credit union and if the credit union isn’t lending money like they should, go to the next annual credit union meeting and vote out the CEO and other board members. Communities know what’s best for the community not some person with the title of CEO. Now go out and get another piece of the American Dream, a home.
• Ahwatukee resident John D. Rodriguez is a community organizer and a licensed sports agent in Arizona. Reach him at firstname.lastname@example.org or 602-526-7512.