Jan 3 2018 38376 1
Difficulties in Qualifying For Home Loans Today
Historically low interest rates have spurred many new buyers to look into getting a mortgage. It is important to remember that there are many extra steps that buyers need to do in order to get qualified now. Due to a high rate of loan defaults and foreclosures during the financial melt-down starting in 2008, there have been many changes in lending regulations. These regulations are enforced to protect buyers from predatory loan practices. To avoid difficulty in getting a loan, plan ahead and address these issues with your mortgage broker. Here is what you can expect when searching for a loan.
More Documentation Required. Lenders will request documentation that projects your income, assets, savings and debts so they can compare this to your potential loan payments. You will have to prove all of your information rather than simply telling your lender what it is.
Lower Loan Amounts. The loan underwriter will need to judge a person’s ability to pay based on current interest rates and not a low introductory rate. The higher interest rate cannot push the buyer past a 43% debt to income ratio over time.
Qualified Mortgages. Some terms that are banned by Federal Regulations include interest-only payments and loans that are longer than 30 years.
If you would like to get pre-qualified for a loan with a great lender, please call me to discuss various options available. I work closely with several mortgage brokers and would be happy to refer you to a specialist.
I also work with Veterans seeking to buy a home and there are special programs with zero money down and closing cost assistance if one qualifies for a V.A. Loan. Call me at 818 262-0924. I am ready to help.