How Todays Economy Affects Mortgages
The mortgage landscape has changed dramatically since 2007 and the fallout from the recession
. The number of mortgage products, lenders and ability for credit challenged borrowers to get financing has decreased. The lack of sub-prime mortgages has catapulted the FHA (Federal Housing Administration) back to the forefront as a guarantor that is not totally credit score driven. While the FHA does not directly make mortgages, their guidelines for approving applicants still permit some flexibility not found with most remaining mortgage products.
However, the U.S. economy continues to create cautious mortgage lenders and secondary market investors. Borrowers wishing to get mortgages in this economy should consider the following suggestions to improve their odds. CreditNowUSA can help home owners and buyers get the financing they need, particularly if applicants understand and/or adopt some of these tips.
Accumulate as much cash in the bank as possible. This is a good news/bad news suggestion. Borrowers with four to six months living expenses in a bank accountin addition to down payment requirements for a home purchasehave excellent chances of getting the mortgages they want. Those that have no cash reserves after making a down payment face long odds of securing the mortgage they crave.
Self-employed borrowers have new hurdles to clear. Once the darlings of creative mortgage lending, business owners now must have organized and substantial financial situations. Small business accounting systems that include throwing deposit slips and bills in a large manila envelope are a recipe for rejection in todays home lending market.
Do not push the debt-to-income (DTI) envelope. During the sub-prime mortgage heaven of the early 2000s, DTIs for mortgage payments and total debt soared beyond classic 28 percent (mortgage payment divided by monthly income) and 38 percent (total debt payments divided by monthly income). Be conservative; try to stay within these guidelines.
Repair credit report problems and delinquencies. CreditNowUSA can help you with this important requirement. Bad credit mortgages are an endangered species in this economy. Build (or rebuild) your credit score as high as possible to get mortgages.
Following these suggestions and working with mortgage pros like CreditNowUSA can get you the mortgages you want. Take advantage of the excellent real estate prices and low rate mortgages available to buy the home of your dreams.
For more information, go to Mortgages at http://www.creditnowusa.com/Mortgages
by: Money Lender
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