Today I would like to address the current state of mortgage financing which everyone gets the majority of their information from the television and radio. If you have watched the news lately then I am sure that you have heard that it is harder than ever to get a home loan due to credit requirements as well as underwriting requirements. All of these commonly reported themes are not all totally true. The only change that we have seen of the past six months in mortgage lending is that a person now needs over a 580 middle credit score in order to do a manually underwritten loan. The minimum credit score used to be 500 but it has changed to 580 ONLY on manually underwritten loans. We are closing loans with automated approvals that have less than a 580 credit score also by the way. The only other change is the stated income loans have been pulled by most investors. This does not represent a loan that is used by most customers as the rates were higher and the customer had to be self employeed. All of that being said the media is getting America in an uproar mainly because it is sweeps right now. Sweeps of course is when they compute their ratings etc. so they are going with any eye grabbing story that is out there. Right now it is a buyer's market with so many homes available and the financing is still readily available and with great rates. If you do not own a home and are thinking please do not let the media circus detour you from owning your dream in what is now one of the most favorable times to buy a home.
Have A Safe Weekend!
Brad
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