Low rates are great - but can you qualify?
We just fielded another frustrating phone call. A borrower called in who has 700+ credit scores, some money in reserves and verifiable income but his lender has an issue with their appraisal.
Sound familiar?
The promise of rates below the magical 5% mark has people looking to refinance in droves. But the reality is that for all the changes the mortgage industry has seen in the past few years - mortgage loans are tough to qualify for. A few things we recommend doing are:
- Make sure your credit is in order. Lenders are scrutinizing credit reports more than in years past. And having a better credit score 720+ can sometimes mean the difference between getting a loan or not. It used to be that 620 was considered a "good score" for a conventional loan but not in today's market.
- Know your neighborhood. Appraisers are under enormous pressure right now to obtain realistic values with so many markets in decline. And while this is not the case in all parts of the country - you still need to be realistic about the value of your home. As a general rule appraisers should stay within your immediate area or neighborhood for comps.
- Choose a competent lender. This may be the most important one of all. There are plenty of good lending companies out there. But there are also alot of people who are "hanging on" in the mortgage business hoping for a refi boom. Be careful in selecting a lender - and if you don't trust what they are telling you call us. We can help.
Contact us today if you have questions about your loan that is currently in process. Our mortgage loan review covers rate negotiation as well as a review of your loan docs - Good Faith and Truth In Lending. Don't sign mortgage papers just because your lender tells you its the best you are going to get. Check with us first.