In todays market the number of mortgage products offered to consumers are far less than previously offered. But the amount of income documentation required of borrowers has increased.
The three government entities that currently dominate the mortagage market underwriting standards for borrowers are The Federal Housing Administration, Fannie Mae and Freddie Mac. It is highly unlikely that a bank will issue a mortgagge that is not guaranteed by on of the three entities. Therefore, If you are looking to purchase it is imperative that you get pre-qualified for a loan. This should be your number one step in the purchasing process. Keep in mind that there are good loans available for qualified buyers and interest rates are at historic lows as well as properties prices.
FHA Loans requires borrowers to put down just 3.5% if they have a credit score of 580 or above. In contrast a conventional loan require a credit score of 740 or above.
You will need the Documentation of a borrower's income for at least the last two years plus information about total debt, which includes any assessmnets, credit card balances and auto loans as well as how much cash is available for a down paymnet.
You must be organized and provide copies of your tax records, bank statements, W-2's and be prepared that lenders will take into account what their loan-to-value ratio is. The banks today are looking the debt to be in the 40-45% range, which is in line with historical lending standards.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment