If you are a returning Downtown San Diego Real Estate investor or customer seeking a second mortgage, keeping your credit in good standing is important according to a recent article published by the San Diego Union Tribune “How credit affects your chances of getting another mortgage”.
If you compare a home owner or a Downtown San Diego Condo home owner who defaulted or filed for bankruptcy to another home owner who terminated a mortgage for other more valid reasons such as a trade up or relocation. The home owner who terminated the mortgage for more valid reasons has a chance of getting another mortgage about two and a half times faster. The article mention that 35 percent of the more valid home owners took out new mortgages 12 years after a termination and home owners who defaulted only reached 12 percent.
Your credit will get affected very steeply should you default or foreclose on your home. According to the study mentioned in the article credit scores for home owners who defaulted usually end up with a 600 score. Lenders use the credit score as one main item when determining if you would be credit worthy and many require a credit score higher than the 600. It may take home owners who defaulted about four to seven years to qualify for a loan from Fannie Mae or Freddie Mac. These two mortgage giants are the vast majority of the loan market and chances are big that you would end up with a loan from them. Keeping your credit score and maintaining it is crucial to getting a home mortgage either in Downtown San Diego or nationwide.