Are You A Boomerang Buyer?

Just like a Boomerang....Home Buyers are coming back to the market! The first wave of 7.3 million homeowners who lost their home to foreclosure or short sale during the foreclosure crisis (2007 to 2014) are now past the seven-year window they conservatively need to repair their credit and qualify to buy a home. More waves of these boomerang buyers will be moving past that seven-year window over the next eight years representing a massive wave of potential pent-up demand that could shape the housing market in the short term. The Sarasota housing market is in the top 10 (#6) metropolitan areas likely to see a large share of Boomerang Buyers.

Are you ready to get back to homeownership?

Here are a few tips to share with hopeful buyers that will tighten up their wallet and make the dream of being homeowners a reality again;

1. Keep up with Your Own Credit

It can’t be stressed enough that you review your credit report closely for errors, because whether it’s bankruptcy, foreclosure or short sale, it is common to find misreporting. If any misreporting is found, you need to gather the proper documentation and contact all three credit bureaus (Experian, Equifax and Transunion) to request its removal. If you need help with contacting the credit bureaus or correcting erroneous credit information, please do not hesitate to contact Scott Nold for assistance.

2. Talk to a Trusted and Local Mortgage Expert

Choosing the right loan officer is a critical part of the battle back to homeownership. Be sure you do your research and find someone that will help rebuild your credit (if needed) and walk you through the underwriting process. Always get Pre-Approved before looking at homes or making offers to purchase. Please do not hesitate to contact Scott or Kelli Nold for a reference, Scott spent many years in the mortgage industry and knows who to trust to get you accurate information.

3. Have a Down Payment Ready

There are loan programs available that will require minimal down payments but not all buyers will qualify. Even if you qualify for one of these low down payment loan programs the seller will rightfully expect any buyer, regardless of their past, to have a Good Faith Deposit/Earnest Money Deposit to be held in escrow until closing.

4. Buy Responsibly

Stay away from homes that are priced at the top end of your budget. Underwriting guidelines for Boomerang Buyers are usually more conservative, which means they have an allowable debt-to-income ratio that is written in stone – not as flexible as you may have experienced in the past. Come up with a comfortable price range and stick to it during your home search.

Not sure of the “waiting period” required to get a new mortgage loan? Here are a few guidelines for FHA, VA, USDA, and Conventional programs;

Bankruptcy – 2 to 4 years from discharge depending on loan program.

Foreclosure – 2 to 7 years depending on loan program.

Deed-in-lieu – 2 to 4 years depending on loan program.

Short Sale – 2 to 4 years depending on loan program.

**There are also Bond Programs available with all loan programs above, providing up to $10,000 to be used toward down payment and closing costs, for First Time Buyers and those not owning a property for the last 3 years.

Do you still have time to wait but have at least a 30% down payment? We have private lenders that may consider you for financing today.

We realize the need to inform & educate Boomerang Buyers and we want to earn the job of your trusted resource. If you would like to attend one of our quarterly Boomerang Buyer Seminars, or want detailed information on the loan programs mentioned above, please do not hesitate to contact Scott or Kelli Nold today!