As many of you know, the lending world has been pretty unpredictable lately.  What may have been ok with your lender 6 months or even 2 months ago may have changed.  So as a buyer in Humboldt County California, if you took a break from your home search to see where the market will end up and are ready to start looking again (because there are more homes to choose from in your price range), it’s a good idea to sit down with your lender to see if you still qualify for the same loan product.

Lenders have tightened up tremendously on what they require from a buyer before they will give you a loan. 

1.    Your Credit Score is a big one  - lenders are looking for buyers with excellent credit scores and the number keeps creeping up.  So if you were approved for a loan and you had a credit score of 650 six months ago, you may no longer qualify for a loan at this time, or you may have limited loan options.

2.    The amount of cash you need to bring in to purchase a house has changed.  Lenders are requiring larger down payments than before.  Although first time homebuyers still have the option of getting an FHA loan (which requires you to put down 5% of the purchase price (cash)).  And if you are an investor – you’ll need to put down at least 20% for your cash deposit.

3.    You may need to provide more information about your financial situation on paper than you had to before.  Most lenders call this a Full Doc Loan – where they look at your work history, 2 years of income tax information, bank statements, etc.

4.    If you made a major purchase since you received your approval letter from your lender you may no longer qualify for a loan (ie: You purchased a car, big screen TV, etc on credit).

It’s a good idea to stay in touch with your lender even if you decide to hold off on purchasing your Humboldt County California home.  He will be able to keep you posted on where the lending market is and what steps you may have to take to be approved for a loan in today’s changing Humboldt County California real estate market.

Copyright 2008 Jessica Bigger.  All Rights Reserved. *Humboldt County CA Real Estate Buyers - Time to Update that Pre-Approval or Pre-Qualification Letter Before You Buy a Home.*

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Contact Jessica Bigger, Realtor®, Ming Tree GMAC Real Estate at 707-269-4305 to list your home for sale or to purchase your first or next home in Eureka, Cutten, Bayside, Arcata, McKinleyville, Westhaven, Trinidad and the rest of Humboldt County California.

To view all Humboldt County CA Historic and Luxury Homes for Sale Click Here, then click on Search Area Listings at the top of the web site.  I know Humboldt County CA well and can help you get your home Sold or help you buy your next Humboldt County California Home. Call today!