STRICTER LENDING STANDARDS

By
Real Estate Agent with Reliant Realty 213-638

Todays TENNESSEAN, (Page 1 and continued on page 9A) had a great story about the mortgage industry's, mortgage insurers.  Mortgage Insurers insure the lender that the amount of the loan above 80% is guaranteed. 

According to the story up to 25% of the nation's Zip Codes are now on that list that they are refusing to insure.

What does this mean to you the consumer, well if you don't have 20% down payment, you may not be able to get a loan even with good credit.  There are of course still some loans with less down, FHA, VA and some 90-95 percent loans, but you will need a good credit score.

None of these Zip codes were in Tennessee, however most of lender's have tightened there underwriting requirements.

I always advise a potential purchaser to get PRE-APPROVED for a loan BEFORE, looking at properties, this way you will know what you can afford, (according to a lender) and in this market that's all that matters.

"The Mother-Daughter Team" of Reliant Realty will be glad to extend counseling to any potential buyers and/or sellers and discuss your needs in depth. 

DORIS M. FREEMAN     and     SHERRI L. SMITH                        E-MAIL: dorisandsherri@yahoo.com

615-438-3221                          615-557-2070                         RELIANT REALTY

 

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