How hard is it to get a mortgage in the current economy?

I am constantly confronted with wildly different views on what getting mortgage is really like today.  To hear some people talk one would think getting a mortgage is nearly impossible, and yet others make it seem easier than ever.  I find that typically the truth lies somewhere in the middle.

As a mortgage lender I can tell you without hesitation that it is harder to get a mortgage than it was 2-3 years ago.  Right now it is near impossible to find a mortgage unless you have a 620 credit score and 3 years ago you could get 100% with a 580 credit score pretty much anywhere!  The problem is that your perspective can make something look much worse than it is, and as a lender my perspective tells me that things aren’t that bad…

#1.  Mortgages are harder to get, NOT because lending requirements are too strict now but because they were too easy a few years ago!

A few years ago you could borrow too much too fast.  Many lenders didn’t check income thoroughly enough and allowed higher debt for people with the worst credit!  Today loans are readily available for anyone that has descent credit and can actaully afford the monthly payment.  Income and debts are thoroughly verified to ensure people don’t make a huge mistake that would hurt them, the local enconomy and the lender.

#2.  You do NOT need a huge down payment to buy a house!

I keep hearing people talk about this imaginary 20% down requirement that appearantly every other lender in the world is stuck with!  I am offering loan with zero to 3.5% down everyday.  There are a ton of government programs available to help people with low to moderate incomes with down payment money and closing costs.  People with higher incomes should be able to provide a 3.5 to 5% down payment.

#3.  Loans can still be closed quickly!

Many lenders have suffered from severe backlogs this year.  Here at WR Starkey Mortgage we are still closing loans in as little as 2 weeks!  If you want to take advantage of the $8,000 tax credit there is still time!

Getting a mortgage today is not very difficult for people with moderate credit, income and cash.  You don’t need a small fortune or a huge paycheck and with homes more affordable than ever now is the time to buy.  Rates are still very low and first time homebuyer tax credit runs out Dec. 1st, 2009.  If you have always wanted to own your own home, there was never been a better time to try.  I offer all of Carmen’s clients a FREE Pre-Approval service, just visit my website at www.LoansByOlan.com or call me at 980-721-7478.

Contrary to rumor, mortgages are not that hard to find!

Homebuyers have returned to the market, and sales are increasing but too many are still sitting on the sidelines.  There are First Time Homebuyers that would love to take advantage of the $8,000 Tax Credit but don’t think they can!  Fear of the unknown keeps people from pursuing their dreams everyday.  This is a real shame.

I have heard strange rumors like, “You need 20% down to buy right now, right?” or “You can’t get a mortgage without perfect credit!”  These rumors are FALSE, and the truth has been buried beneath an avalanche of bad news.  Let’s take a look at some facts about the current mortgage market in North and South Carolina…

• Credit score minimum for most home loans = 620 NOT 740 or even 700!  620 can qualify you for an FHA, USDA, VA or even some conventional mortgages!!
• Average 30 Year Rate = 5.08% last week (taken from Freddiemac.com)
• Down Payment Requirements are low!  3.5% for FHA, 0% for USDA, 0% for VA loans and only 5% for Conventional!
• Banks ARE LENDING! I can’t speak for other banks, but here at WR Starkey Mortgage we are closing loans in less than 3 weeks on average.

If you want to take advantage of the first time homebuyer tax credit you need to act NOW.  The credit expires Dec. 1st of this year.  You must be closing by that date, but there is still time if you start looking now.  Start here by seeing what you can afford.  For more information you can contact:

Olan Carder at 980-721-7478 or visit my website at www.LoansByOlan.com.  Pre-approval is FREE!