The credit markets were nearly frozen. Lenders couldn't lend because they were receiving no payments on existing loans. The legislation allowed the government to buy troubled loans and mortgage securities. The funds that the institutions received when the government purchased the existing portfolios were to be available to issue new mortgages with more carefully specified and monitored lending standards.
The lenders are looking closely at credit score. Now is a best time to increase your credit score. You can ask an ethical mortgage broker to do a rapid rescore. The following activities can pull your credit score down FAST...buying furniture on credit, applying for credit all over...department stores, gas credit cards. If you start getting declinations on credit applications, it shows and affects your credit score adversely.
A tremendous amount of current foreclosures took place when the purchaser did not put any or hardly any money into the purchase of the home. Following the resulting mortgage crisis, lenders now want people to put their own money towards the purchase of the home. The thought is, the bank feels the potential home buyer can afford it, and the new home owner will be less likely to walk or give up if their own money is at stake.
I am here for you. I look forward to hearing from you about the dreams you have for a new home.
Warmly,
Stephanie LeFew
Solaris Realty of Tampa Bay
813-624-3332 cell phone
813-991-1355 home office.
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