This type of buyer may become your client soon
10/06/2015 | Author: Editorial Staff
Research by credit-reporting company TransUnion finds that approximately 700,000 buyers who went through a foreclosure, short sale, loan modification, 60-day delinquency, or other problems during the foreclosure crisis beginning in 2008 may qualify for a mortgage loan this year.
Returning buyers may qualify for loans now thanks to time: Credit scores have had time to improve, and these former homeowners are meeting minimum waiting periods required by lenders such as Fannie Mae, Freddie Mac, and the Federal Housing Administration. TransUnion estimates that 2.2 million previous homeowners could re-enter the market over the next five years.
Keep the following in mind when working with buyers re-entering the market:
Boost their confidence. They may have more worries about purchasing a home than your other buyers. Emphasize the benefits of homeownership, and reinforce their decision to buy again.
Explain how loan application and approval have changed. Buyers have to do more now to show they are responsible and qualified to borrow a loan, so be prepared to help your return buyers navigate this new-to-them process.
Focus on fixed-rate mortgages. NAR research finds that return buyers prefer stable products, and 92% of these buyers used a fixed-rate mortgage product in 2014.
Leave a Comment
The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.
While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.