How the Recession Will Affect Getting a mortgage in
Tarpon Springs, Florida's Central Gulf Coast
Now, during the recession and what is called the credit crunch, the lending practices of banks have changed. In order to get a home in the Tarpon Springs, Florida Central Gulf Coast real estate market it's important to stay abreast of how the recession will impact your ability to get a mortgage.
Here's how things have changed.
Remember that the Florida Central Gulf Coast real estate market is a very promising market to live in. If some adjustments need to be made because of the financial circumstances of the economy,
it's well worth it.
Banks have started being a little bit more cautious when it comes to lending. It is recommended that consumers now have a credit score above a 720. A score like that can be pretty high for most people. However, just because lenders are getting a bit more strict when it comes to credit scores, that doesn't mean you won't be able go get a home in Tarpon Springs, Florida Central Gulf Coast . Get a Credit report and start cleaning up any discrepancies and start now to Fix any problems that might come up.
Another thing that should change because of the recession is the down payment.
Prior to the recession, many lenders were very lenient on whether or not you had to pay a down payment. Now, most lenders, even FHA, will require one. In fact, nearly all lenders will want borrowers to make some form of a down payment in order to qualify for a loan. Experts say that the size of the down payment could vary. However, borrowers should expect to put down at least 3.5%.
Lenders are also getting stricter on Documentation. Now borrowers will be required to provide document verification that will prove both their income and assets. These requirements are quite a leap from the easy housing boom prior to the recession. During that time, lenders were eager to give home loans to just about anybody that walked into the office, but those days are over.
Consider shopping around for just the right lender. This is because the credit crisis has not affected all the banks in the same way. The avenues for getting credit for a home in the Tarpon Springs, Florida Central Gulf Coast real estate market are extremely diverse. For instance, some lenders did not involve themselves in sub prime lending. Therefore, they are able to give out loans at a lower markup than many of their competitors.
Don't go with the first lender, shop and compare.
You'll want to take the time you have now and save up for the down payment. Since the credit crisis started, cash is becoming very important. You don't want to be flat broke when you end up closing on the mortgage. There's something else you usually have to pay called closing costs and many people unfortunately forget about these. Don't forget about closing costs because they could run anywhere between 2% to 6% of the purchase price. Getting a home in Tarpon Springs, Florida Central Gulf Coast can be a positive experience even during a recession. You just have to know what you are up against and you need to get prepared.
Tarpon Springs, Florida Central Gulf Coast is an incredible place to live. You don't want to miss out because of today's financial crisis. There is a lot of free information available to you about buying, selling or investing in Tarpon Springs Florida real estate. For complete information about the Tarpon Springs Florida real estate market including current homes for sale, foreclosures, property values and more please visit the most complete website online dedicated to everything Tarpon Springs Florida and the Florida Central Gulf Coast real estate at http://FloridaRealEstateConnection.com Please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer your questions. Call me on my cell at 727-458-2835 or email me at JoeSold@JoeSkiRealtor.com
Comments(0)