This could be the time to get re-prequalified
If you were pre-qualified for a mortgage loan in the last few weeks, you should contact your mortgage lender to be sure you still qualify. Daily I am receiving announcements from my investors listing qualifying changes on their loan programs and in some cases the discontinuation of certain loan programs altogether.
If the home you plan to purchase is located in a “declining market” many investors are now requiring an additional 5% down payment. On the purchase of a $200,000 home, the down payment would increase by $10,000 and very few people have this kind of money just setting in the bank. An FHA loan would be a good alternative if should this happen, as they do not require the additional down payment.
Credit scores are now playing an increasing role in the interest rate you will be offered. It is calculated on a sliding scale; the lower your scores the higher your interest rate will be. This could very well affect your debt to income ratio and disqualify you for the loan you were pre-approved for just last week.
With some investors, such programs as a cash-out on an investment properties have been discontinued along with “stated income” for borrowers who are not self-employed. Other programs have stricter guidelines requiring lower debt-to-income ratios, higher credit scores, lower loan-to-value percentages and additional cash reserves.
Make sure your lender is staying on top of these changes in the market place so that you are not caught at the last minute without a loan to purchase your new home or to close on the refinance you applied for.
Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622
If the home you plan to purchase is located in a “declining market” many investors are now requiring an additional 5% down payment. On the purchase of a $200,000 home, the down payment would increase by $10,000 and very few people have this kind of money just setting in the bank. An FHA loan would be a good alternative if should this happen, as they do not require the additional down payment.
Credit scores are now playing an increasing role in the interest rate you will be offered. It is calculated on a sliding scale; the lower your scores the higher your interest rate will be. This could very well affect your debt to income ratio and disqualify you for the loan you were pre-approved for just last week.
With some investors, such programs as a cash-out on an investment properties have been discontinued along with “stated income” for borrowers who are not self-employed. Other programs have stricter guidelines requiring lower debt-to-income ratios, higher credit scores, lower loan-to-value percentages and additional cash reserves.
Make sure your lender is staying on top of these changes in the market place so that you are not caught at the last minute without a loan to purchase your new home or to close on the refinance you applied for.
Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622
posted by Academy National Mortgage at 10:31 AM
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