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.
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