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: firstname.lastname@example.org
615-438-3221 615-557-2070 RELIANT REALTY