It will be much easier for you to get a new mortgage/new home by selling your home. If you try to get a new loan or purchase a new home, your current mortgage will be accounted for, specially if your current home has less than 25% equity.
Polo Carrillo (626) 234-6520 firstname.lastname@example.org
This is actually not a hard problem to solve. And before you even begin the process of trying to get pre-approved (or fully approved with a lender), there are some basic questions you'd need to answer and strategies you'd need to have in place. I tell all my clients that a pre-approval is ALWAYS an analysis of four things:
4) Collateral (the home's value and ability to appraise)
Before you get overly concerned about your credit preventing you from a future purchase, I would want to make sure all else is well too. If it is, then we can dissect the credit and develop a strategy from there.
If you think I can help, don't hesitate to get in touch. I'm in CA also.
Even if you're trying to get the loan modification because you can afford the payment but just want a lower rate it can be construed by a new lender that you have an affordability issue.
If you want a bigger house, I can help you find a bigger house. Your FICO score is high enough to qualify for an FHA loan. You would have to have a secured lease agrmt for 1yr with a tenant in order for the lender to NOT count that payment towards your debt ratio.
Email me directly if you'd like to talk about this some more. I can also refer you to one of my lenders who you can put an application in with.
Realtor Since 1996
There are many questions I need to ask you before I can give you professional advise. It sounds like your an intelligent home owner that is aware of the opportunity in this down market to move up to a better home in a better neighborhood. Our team has lawyers on retainer at no cost to our clients that specialize in your type of situation. Along with the network of preferred lenders that we do business with on a regular basis, you will get honest and professional answers with results that will get you in to that bigger home that your family desires. Give us a call for a free consultation with no obligation. Thank you. 562-552-4311
The reality is that it will be an Underwriter who has to make a determination.
The problem is that in the past a loan modification was viewed as just about the same as a foreclosure or other serious derogatory credit issue. People didn't get loan modifications unless they were in trouble financially and lenders would typically require you to wait 24 months to re-establish good credit.
Your scenario obviously doesn't fall into that description and your file will need to be handled as an "exception." Pick a lender you are comfortable with, pay the $20 for a credit report, and go through the pre-approval process. Give it a shot and you may have success.
If you'd like help feel free to contact us via our profile.