Considering a New Home Loan?

Those considering purchasing a new home need to be prepared for the changes that are happening almost on a daily basis in the mortgage marketplace.  Fannie Mae & Freddie Mac are changing guidelines on a fast and furious pace to keep up with the real estate market declines in most of the country.  The loan you were trying to get approved for last month (or last week) may no longer be available when you go to submit your laon application.

Most stated income loan programs are disapearing at a rapid pace, or have had significant changes made to them.  A stated income loan is one requiring you to state your income but not document it.  These loans have all but become extinct in the home equity divisions of almost all companies.  Home equity loans, and lines of credit are becoming more difficult to obtain in connection with a first mortgage to avoid PMI or mortgage insurance.  Many lenders are not allowing these programs any longer due to the fact that they are not protected in the event of a foreclosure without the presence of mortgage insurance.  So don’t be surprised if you apply for one of these loans and there have been significant changes.

Credit Scores from 620-679 will now cost you more in the form of points, and or rate on your mortgage.  Many lenders and Mortgage insurance companies will no longer finance over 80% loan to value in the event your credit score is below 620.

Anyone in the process of buying a home needs to be in touch with their loan officer on a weekly basis.  Make sure the program you need to finance your home has not been eliminated or had major changes made to it that might create a problem for you when you go to finalize your real estate transaction.

If you have any questions or comments, we’d love to hear from you.  Post your comment below.  Your email address will never be published on this site in order to protect your in-box from spam.