Can You Purchase a Home Again After a Foreclosure?

Posted by Liliana Sorescu on Tuesday, July 2nd, 2013 at 2:52pm.

If you've gone through foreclosure or a short sale, can you still purchase a Townhouse or Condo in Vancouver?
 
Yes, you can. You'll be eligible for a new mortgage loan 2-3 years after a short sale and 7 years after a foreclosure. The deciding factor will not be the fact of the short sale or foreclosure, but what you've done since then.
 
As with any loan, your acceptance or denial will be based on how you've handled your finances in recent years, how much you owe compared to how much you earn, the stability of your employment, and how much you've saved toward a down payment and closing costs.
 
The first step toward owning a home again is to become pre-approved with a lender. Pre-approval will tell you how much money you'll need at closing and how much you can spend on a home given the interest rate they'll offer you. In addition, a letter of pre-approval will increase your chances of being chosen in a multiple offer situation.
 
A reliable mortgage lender will first order a copy of your credit report. Do go over it with the lender and check for errors. If you find errors that are dragging down your scores, file a request with the credit bureau to have them corrected.
 
If your scores are too low to let you qualify for a low mortgage interest rate, ask the lender to explain the steps you can take to improve those scores.
 
Here in Vancouver we're fortunate to have several reliable mortgage lenders who will be happy to work with you. Give me a call at 604 607 5474 and I'll share their names and numbers.

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