Mortgage Meltdown?
When listening to the news you might think that no one can get a loan these days. This is far from true. Hindsight has given us a clear picture of the kinds of loans that shouldn't be offered again. But the loans that have performed more consistently are still abundantly available, and you might be surprised what you can qualify for.
Investors are looking for at least 2 of these 4 items:
- Credit Score
- sufficient verifiable income for the payment amount
- equity in the property or down payment
- Liquid assets (money in the bank, stock market, IRA's, 401k's, etc...)
The items that will make your loan more difficult to obtain:
- Non-Owner Occupied (investment property)
- Stated or No Income (meaning you can't prove it with W2's or Tax Returns)
Bottom Line: If you can really afford to make a regular house payment, there's a very high chance that this can be proven to a lender, who will in turn be happy to give you an excellent loan.
To make things better, interest rates are historically low.
There's even further impetus to act on this information. Even if prices decline another 10%, due to the market panic, there are sellers out there right now selling for 20% under current appraised value. So you might find a house for $160,000 today that will end up being worth $180,000 when the market bottoms out. A paradox, but true. This also means that your value is likely to be at it's highest as far as refinancing is concerned, and remember that EQUITY is one of the positive factors banks consider.
So it still is a great time to BUY!!!!!
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