Getting a new home loan is getting easier!

Getting a new home loan is getting easier!  In recent years, obtaining a new mortgage was much more difficult to the public; now with the mortgage interest rates rising again, there is much more competition among lenders.  Fortunately for the consumer, this means that the guidelines of obtaining a new loan are getting a little bit easier.  They are much more flexible now than the previous 2 years. 

A handful of ways that our mortgage guidelines and types of loans that are offered to consumers vary amongst the type of loan required, amount of down payment, credit score, history, and basic business competition.

At one point you usually had to have a strong track record, steady job history, steady income, and higher credit scores.  Many lenders are now willing to let a not-so-great credit score qualify for a loan if they are able to have a heavier down payment for the property allowing some negotiation.  Many lenders are also starting to offer 2 types of loans that were something of the past - income-stated loans and subprime loans.  The idea behind them is similar to the type of loans from a decade ago, but the requirements for them are much steeper than in days past.  The stated-income loans are for those who are self-employed and do not have tax returns backing their full income.  Many self-employed home owners have a lot of written off expenses and fluctuating income that would make an otherwise traditional mortgage much more difficult.  These loans are often requiring a much higher down payment to qualify.  We are also seeing the emergence of many lenders offering subprime lending as well.  Like the former- these will also require a higher down payment and are expected to be heavily regulated.

Mortgage experts anticipate the 30-year fixed rate mortgage is going to hit 5% within the next 12 months.  Competition among lenders is something that has truly lacked for the last 5 years, and with these rising interest rates and with less consumers, we should see an increase in the supply of loans with more options becoming available.  It is starting to become easier to qualify for a new mortgage, which will help many on the path towards home ownership!

If you were unable to qualify in the past, this could be a good time to try again.  Ten Peaks Sotheby's International Realty works with a variety of local lenders here in Summit County and would be happy to refer you to a mortgage expert.