It's September. Buyers, do you know where your home loan is?

Real Estate Agent with Coldwell Banker Platinum Properties

On October 1, 2011, conforming home loan limits which are currently at $ 729,750 in Southern California will be reduced to $ 625,500. This means that home loans above $ 625,500 will be priced as jumbo loans, which carry higher interest rates and are more difficult to qualify for because they are not backed and insured by the government. Irvine Home buyers who have been putting off purchasing a home in the hopes of lower real estate prices may find that, once they decide the time is right to buy, home loans are a lot harder to get. The tightening of available loans is likely to continue.

Many prospective home buyers already face rigorous underwriting standards, even for conforming loans. While interest rates are at a historic low, getting approved for a home loan is a daunting process. Home buyers need to be organized and prepared and have documents available to prove income and cash reserves. If the downpayment for a home comes as a gift to the buyer, the person giving the cash gift must provide copies of their bank statements and sign a gift letter. This lender requirement often comes as a surprise to the donor, so buyers who have the good fortune of obtaining a cash gift should prepare the giver in advance.

One thing is certain: The landscape of lending is bound to change. Get a loan and purchase that home while "the gettin's still good". An experienced loan officer is invaluable when it comes to navigating the approval process.

As an experienced full-time real estate agent in the Irvine area I can help prospective home buyers obtain their new home.

 the real estate matchmaker in irvine




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