Life sometimes takes us on unexpected journeys. You may think you’re heading in one direction and then—surprise—you’re on a completely different path. For example, if you experience a major credit event, such as a bankruptcy, foreclosure or short sale, your credit score can be severely impacted, which can affect your chances at qualifying for a mortgage loan. Chances are you’ll eventually be able to consider home buying—but it might take a little longer than usual. So, what can you do if you find yourself in this situation? First, relax. And then…

Determine your wait time.
Even after you’ve reorganized your finances and reestablished your credit, you’ll probably have a waiting period before you can arrange new financing. However, that waiting period may be shorter than you think. Different types of loans have different waiting periods, eligibility requirements and guidelines. FHA loans, for example, can have shorter waiting periods than conventional loans because the credit guidelines can be more forgiving. Of course, everyone’s situation is unique, so it’s best to contact a loan officer to learn your options.

Dig out those documents.
Extra documents may be required during your loan application if you have a major credit event in your past. In addition to all the usual items you’d need to process mortgage paperwork, you’ll also need to bring any applicable documentation from your bankruptcy, short sale or foreclosure. These may include:

• Bankruptcy records, discharge receipts and/or repayment statements
• The HUD-1 Settlement Statement you received after a short sale, plus a statement from your previous lender indicating your mortgage is considered paid in full
• A Trustee’s Deed or similar document verifying when your foreclosure was complete

Get more information.
There’s always a silver lining if you’re willing to look for it, qualifying for a mortgage loan after an unfortunate event is no exception. As you begin to research the possibilities that lie ahead for you, you’ll surely find lots of relevant information. You can start by downloading our helpful guide: Buying a House After Bankruptcy, Foreclosure or Short Sale. And, you can always contact our affiliate, HomeAmerican Mortgage Corporation, to help you sort through the particulars of the process. Call 866-400-7126 today.