Rates are at record lows, but do you qualify for those rates?

If you haven’t heard about these record low mortgage rates in Tega Cay, you might want to check into having the internet hooked up to that rock you’ve been living under.  The news is everywhere that mortgage rates are super low, but the real question is, “Can you qualify for them?”

It really doesn’t matter how great something is if you can’t get your hands on it.  That is one of the reasons why record low rates have not magically lifted this economy back to health.  Many people haven’t been able to refinance into a better situation because they can’t qualify.  Let’s take a look at why…

1. Home values have dropped in many areas.
2. Credit scores now affect what rate you get!
3. Loans people used to buy their home a couple years back, no longer exist!

If your home value has dropped below what you paid for your home, you are probably stuck.  Lenders are trying to make safer loans (the ultra-risky loans are what got us here) so they are not going to lend over the value of the home.  Fannie Mae and Freddie Mac has just issued new programs that help your current servicer to refinance your loan.  If you have a value problem, start with you current company.

Credit scores now have a huge effect on what rate you get.  If your score is below 740 you might now get the best rate, and if your score is below 700 you could be paying more than a point (1% of your loan amount) or more to get a good rate.  If your loan is $200K that means the same rate costs you $2,000 more… OUCH!  Have a lender pull your credit immediately and determine if your score is where it should be.  I offer a FREE credit analysis to my customers.

If you needed a “Stated Income” or “No Doc” to buy your house, you might be out of luck.  Have a lender review your financials to determine if you can qualify for a “full doc” mortgage.  Again, this is something I offer FREE of charge.

Hopefully you can take advantage of these record low rates, but one thing is for sure… the sooner you start the sooner you will find out!  Call Olan Carder at 980-721-7478 for more information or click here to visit my blog.