Be “Mortgage Ready” Before Purchase

HUD approved housing counselors are available to assist consumers who have had a past short sale, modification, deed-in-lieu, or even excessive mortgage lates to prepare for reentry back into the housing market.

Did you know that your past mortgage credit can show up as a foreclosure causing a denial for a new mortgage?  The problem is usually discovered when a new conventional mortgage loan is run through a lenders automated underwriting system.

Unfortunately, this problem often does not get discovered until you are already in the mortgage process. The foreclosure problem isn’t visible on a regular credit report.  It is visible on the Fannie Mae and Freddie Mac automated results. Your loan officer may be able to see this on a mortgage credit report that links to details from the three credit bureaus, Experian, TransUnion and Equifax.

Get ahead of this problem before you sign a purchase contract

First, you’ll need to complete a residential mortgage application and have a tri-merged credit report pulled.

Then, the mortgage application and credit will be uploaded into the Fannie Mae system and the automated results will show if your past mortgage credit shows up as a foreclosure.

Proof of the initial event date such as a closing statement and proof of the initial short sale or modification approval from the lender is also required.

Call us at 1-866-702-4557 for assistance that will ensure that your past mortgage credit is corrected prior to making a new home purchase. We want you to be “mortgage ready” when you go to a loan originator or lender for your home loan approval.

There is a fee paid upfront for this service.

Loan originators can provide a credit back to you for closing costs on a new mortgage closing. Talk to your housing counselor and lender for more details.

For help now, contact us at 1-866-702-4557 or housing@navicoresolutions.org.