It is every American’s dream to own a home. That is why people have been flocking to lenders seeking to be given a mortgage. However, recent foreclosures have made the prospect so scary. First timers are afraid of trying while prior owners are yet to recover from the shock of losing the only homes they ever owned. Before gaining an understanding of where this fear comes from, it is important that you understand what it takes to qualify for a mortgage.
When you make an application, your lender will scrutinize it thoroughly. The aim is to find out about your sources of income and overall expenditure on a month by month basis. Eventually, your lender will be able to compute the amount you will be expected to pay every month for the entire period of the mortgage. Other things that will come under focus include college loans, car loan and other debts. Once the lender has a clear picture of your income and expenditure, it becomes clear whether you qualify or not.
There are numerous other issues involved. Once you get the final approval, the property seller is paid and you take occupancy. Along the way, you could end up losing your job owing to a number of reasons such as redundancy, illness or economic recession. This renders you incapable of meeting your monthly mortgage payments. Eventually, the lender takes away the house. This is where the Back to Work Program comes in.
Through this program, you realize that all is not lost. The FHA has now made it possible for you to buy a home one year after a foreclosure. Even if you had filed for bankruptcy, you can still be on course to acquire a new home. However, the Back to Work Program has a number of conditions:
1. You must have gone through what is described as an economic event. This includes things like bankruptcy filing, foreclosure and short sale.
2. It must be proven that you have shown signs of economic recovery.
3. You should be ready to attend counseling on home ownership.
The Back to Work program also frees you from a number of waiting periods that are set for anyone coming out of foreclosure and bankruptcy. You should also have maintained a good credit history during the last 12 months prior to applying for a mortgage. Under this program, millions of Americans can now realize their previously quashed dreams.