The truth is there is NO secret! The simple fact is that lenders and the government have not changed the areas of focus, income, credit, and -..... They have just increased standards for approval. They no longer are willing to accept borrowers who have not demonstrated the ability to manage the responsibility of owning a home and all the problems that occur when doing so. They do not want to be calling up a borrower shortly after a borrower has obtained a home wondering where the mortgage payment is....they want to feel very comfortable that if they sat yes and approval a borrower that they will not have a problem with the borrower.
Knowing exactly what they are looking at beyond credit score, amount or availability of down-payment, and job history is the key. Even if a borrower has a 720 credit score lenders will look at credit history, about of available credit, length of credit history, number of payments that show up in the credit history, recent credit payment patterns, savings patterns regarding deposits, withdraws and patterns showing on your bank statements. They will also look at payment shock and what a borrower has been doing with their cash-flow leading up to their decision to want to purchase.
These are a few of the areas lenders will focus. Having a specific plan of actions with borrowers will allow for a safe transaction and approval with your borrower. We support many Realtor who wish to use our service (HAP) Home-buyers Advantage Program because it takes each client through the process. The client dictates the speed at which we work. We work with a few non-profit agency's across the US and other states along with credit consultants and tools to help us support whether a client will need 1 months of support or 24 months, depending on if they filed a bankruptcy or had a foreclosure in the past. The amount of time we work with a client is dependent on a number of factors but most is put on what their commitment to owning their own home is. If they have a strong commitment and are willing to do what is necessary they WILL and CAN get into a home, that is the Secret!
Ronald A. Giannamore is a Senior Managing Loan Specialist and consultant for Mortgage Services, Inc. If you have any questions he's is available at 800.922.3210 ext 121.