Financing a Home is Not Difficult!

By
Real Estate Agent with TIM LORENZ - Elite Home Sales Team DRE# 00919781
https://activerain.com/droplet/rGd

Financing a Home is Not Difficult!

 

One thing that I honestly can say is holding back the housing market is the overwhelming belief that buyers cannot get financing.

The consensus seems to be that only large down payments are required along with very high credit scores. Even then the belief is that the underwriting is so stringent that most buyers don't want to apply for fear of having their loan rejected.

 

What would really help and could make a difference is for agents to let their clients know that these misnomers could not be any father from the truth. Agents can post information on websites, send information to data bases and even blog to get the word out. The fact is, while lending is not the free-for-all it was five years ago, common sense has come back full swing. Meaning, down payments now are smaller on higher loan amounts than have been in place for years. The government agencies feel the worst of the home price decline is behind us allowing more leniencies. In addition, underwriting documentation requirements have eased because the economy has stabilized and shown signs of improvement so less risk is at stake.

 

In Orange and Los Angeles Counties, borrowers are able to secure a home loan in the amount of $729,750 with only 3.5% down payment. That equates to buying a home for $756,250 and only needing a down payment of $26,500. The down payment can be a gift from family members as well. The credit score can be as low as 640.

 

With 10% down payment, a borrower can obtain financing for their home with a maximum loan of $875,500. With 20% down payment the maximum loan is $2,000,000. From there the down payments increase the higher the loan amount requested. Please find attached additional programs that include Foreign National, Pledged Assets and Asset Depletion loans. Yes, there is now financing available other then Fannie Mae, Freddie Mac, FHA and VA.

 

Please keep in mind it is best for buyers to be preapproved with a lender before shopping for a home so any specific nuances in their case can be worked out prior to entering escrow. However, there really isn't any reason for buyers to be fearful when applying for a home loan. If they can really afford to make the payment, have reasonable credit and can substantiate their income then it is reasonable to expect they will be approved.

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Topic:
Lending / Financial
Location:
California Orange County Mission Viejo
Groups:
Realtors®
Keller Williams 'Rainers
Agents who want REFERRALS!
Orange County Real Estate
Market Reports
Tags:
loans

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Rainmaker
1,143,971
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

No maybe not as bad as the press states ut by no means and stress free or simple thing either (for those with no money and some credit issues)

However if even those are willing to understand some added time and items may be needed even tough loans can and DO get approved and closed!

Good Post and I hope those in fear reach out and try as money is there its "as you stated" not the free for all it was 5 years ago and that is actually a good thing

Jan 24, 2012 04:57 PM #1
Ambassador
464,795
Stacey Smith
Keller Williams Realty - Aliso Viejo, CA
Your Orange County Beach Cities Realtor

Great post Tim and very well written... The lender you work with has a lot to do with it as well...

Jan 24, 2012 06:19 PM #2
Ambassador
1,517,419
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

I agree with Stacey working with a great Lender makes a huge difference.  Just as working with a good Realtor® makes a huge difference in a transaction.  Have a great day Tim!

Jan 25, 2012 03:15 AM #3
Ambassador
1,517,419
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

PS Suggested.

Jan 25, 2012 03:16 AM #4
Rainmaker
2,546,071
Rebecca Gaujot, Realtor®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Tim, I agree we need to let our clients know that buyers can get financing...and give them names of 2 or 3 lenders that you know are great at their job.  Suggested as well.

Jan 25, 2012 09:50 AM #5
Rainmaker
1,025,003
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

US Mortgage

Thanks for the vote of confidence.

Jan 26, 2012 04:22 AM #6
Rainmaker
1,025,003
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

The lender we work with will always be a big factor.

Jan 26, 2012 04:23 AM #7
Rainmaker
1,025,003
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Thank you John.

 

Jan 26, 2012 04:24 AM #8
Rainmaker
1,025,003
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Rebecca

It is important to let the community know what has changed in their ability to buy and sell.

Jan 26, 2012 04:26 AM #9
Rainmaker
1,036,703
Kathy Clulow
RE/MAX All-Stars Realty Inc. Brokerage - Uxbridge, ON
Trusted For Experience - Respected For Results

Tim - helping the real estate buying consumer become more aware of what financing is available will help get the market moving at a faster pace

Jan 26, 2012 08:25 AM #10
Rainmaker
856,247
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

This is a time when many do not understand the market.  They are frightened.  Giving them information will empower them.

Jan 26, 2012 04:59 PM #11
Rainmaker
1,025,003
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Kathy

It is something we all need to make sure the consumers know.

Jan 30, 2012 04:20 AM #12
Rainmaker
1,025,003
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I know Mark and it is up to us to let them know.

Jan 30, 2012 04:20 AM #13
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