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.