Bank creditors’ standards are less flexible than they were before the mortgage crisis. But in San Antonio you can currently sell your house fast right now and still buy the right home when you’re ready again.
Some people I talk to are looking to do “something” about their house, but they are not sure what their actions could mean to their credit or their ability to buy a home again at some point down the road.
Yes, you like being a homeowner, but you’re not happy with your current situation. Sometimes when you’re behind on payments the last thing you want is to think about what creditors want…it’s pretty clear the bank just wants your house payment on time!
Still, a lot of people worry about the repercussions of making a move. Are you wondering if you can safely sell your house fast and then get into a new home at some point in the future? If you’re in a situation that isn’t comfortable right now, and you decide to sell your house fast; will creditors “ding” you when the perfect home becomes available again someday?
Here’s an explanation of what typical conventional banks and creditors are looking for when they pull a credit report, regardless of whether you sell your house fast for cash or list it the traditional way.
- Regular on-time payments count for about 35% of your total credit-worthiness. Pay at least the minimum of what you owe monthly.
- Debt to income of less than 40%. For example If you take home $5000/month, your total loan payments should be no more than $2000/month.
- Length of credit history. The longer the better. Lenders mostly appreciate two years of on-time payments.
- A mix: car loans with a good interest rate, credit cards, personal loans, a mortgage…as long as you don’t apply for too many new accounts at one time.
Proof of Income:
- 2 years of pay stubs are generally required for a new bank mortgage. If you are self-employed you must prove you held your current level of income for at least 2 years. Pay taxes and keep good records if you are a contractor or freelancer.
- Anything that would have considerable value in the event you defaulted on the loan. Banks like to see that they were secured over time and have been available (liquid) for you to use for at least two months. Assets and collateral curb a lenders fear of risk and makes you a better bet for a mortgage. You could even get a better interest rate.
- Lenders look at how long you’ve been employed at the same job, how long you’ve lived at the same address, how long you’ve made regular car payments, how long you’ve gone without applying for a new loan. The more stable you are, the better risk you are.
As a rule, bankruptcies, foreclosures, judgments, defaults, liens and repossessions will negatively affect your ability to get a loan.
Foreclosures and bankruptcies stay on your credit history for seven years, although you can apply for a mortgage two years after either of these. If you’re like many people who are behind on your payments you can sell your house fast, say within a couple of weeks, and do less damage to your credit than either of these two options.
If you walk away from a house that’s “underwater” (the balance of the mortgage is more than the house is worth), especially if you have the ability to pay; you could have to wait twice as long (up to 5 years) before you will a mortgage again.
Those are general guidelines. Creditors claim to take all circumstances into consideration when they look at a potential borrower, but in truth it mainly comes down to these items listed above.
With planning and good information however, you can control much of your ability to purchase a home by knowing the standard operating procedures of conventional lenders — even if you do sell you house fast for cash.
We can buy your house fast in Texas! Markette Properties presents an unique, simple approach for selling your home! We are real estate investors. Yes we buy houses in Texas just like yours! And yes we are dedicated to the highest professional real estate standards for all of our clients.
Do you want to sell your house fast in Texas for top dollar with the least hassle? Give us a call! (210) 853-2788 or click the button below.
Photo Credit Flickr CC: Dbilleaud