If you recently had to sell your home as a short sale you might be wondering if it is possible to get another mortgage after a short sale. In a few words yes it is possible to get another mortgage but there are some certain stipulations that are attached to your situation and will take some hard work in rebuilding your credit score to obtain another mortgage.
The first step you will want to take when applying for another home loan is to review what lead to your short sale. Fannie Mae requires that you wait 24 months before applying for another mortgage if you were delinquent on your previous property. If you were current on all of your payments and still had to short sell then you may apply for another loan right away.
You will also want to manage your credit very carefully. You can obtain your credit report from the three reporting bureaus free of charge once per year. When you receive this report you will want to check it for accuracy and make sure all of your other debts are current. By doing this you will greatly increase your appeal to potential lenders and get started on the right track to restoring your credit score. Another way that you can increase your attractiveness to potential lenders is to lower your debt to income ratio. Lenders will look at the total income you make per month and compare that figure to your monthly expenses. If the ratio is too high you are less likely to receive a loan. Having a solid financial budget will help you out a great deal when trying to secure another mortgage.
Be up front with possible lenders when discussing your past. Letting them know about your past situation and the current steps you are taking to correct this will help you to get that second loan. If you can provide documentation about your short sale, current financial situation and how you are taking appropriate steps to rectify this you will greatly increase your chances of obtaining another mortgage.
While it certainly is no easy task trying to get another mortgage after a short sale it is something that still can be done. If you follow the tips in this article you will be giving yourself the best possible chance to succeed while hopefully restoring the damage that the short sale has caused to your credit report.