2007 CHANGES TO HOME LENDING GUIDLINES AND HOW IT MAY EFFECT YOU.

  RENTERS WHO MAY BE LOOKING TO PURCHASE A HOME IN THE NEAR FUTURE ARE LIKELY TO FEEL THE MOST IMPACT FROM THE RASH OF SUDDEN CHANGES IN LENDING REQUIREMENTS INSTITUTED IN FEB/MARCH OF THIS YEAR IN WHAT MAY BE CONSIDERED AN ATTEMP BY THE LENDERS TO CURB FORECLOSURE RATES OR THE FORCLOSURE RATES THEMSELVES PUTTING THE HURT ON THE LENDERS. EITHER WAY REQUIREMENTS ARE GETTING STIFFER.

  HIGHER GUIDELINES WILL EVENTUALLY BRING BETTER QUAILIFIED BORROWERS TO THE SURFACE AS REALTORS AND ACTIVE LENDERS SHIFT THE FOCUS OF THEIR ADVERTISING, GETTING AWAY FROM BAD CREDIT NO PROBLEM ADVERTISING AS FEWER AND FEWER LENDERS WILL TOUCH THESE LOANS.

 SO WHAT DOES THIS MEAN TO YOU.

AS A NON HOMEOWNER LOOKING TO BUY SOON, GET STARTED BY GETTING APPROVED FOR FINANCING AS SOON AS POSSIBLE. THERE ARE STILL SOME LENDERS OPERATING UNDER THE OLDER LOOSER REQUIREMENTS. IF YOU CREDIT OR INCOME IS MARGINAL YOU STILL HAVE SOME TIME TO GET INTO A HOME. IF YOU ARE FORTUNATE AND STILL QUALIFY UNDER THE NEWER GUIDELINES DON'T TAKE TOO DEEP OF A BREATH, BECAUSE THE ONE THING YOU CAN COUNT ON IN THIS BUSINESS IS THAT THINGS WILL ALWAYS CONTINUE TO CHANGE. SO APPROVED TODAY MAY NOT MEAN ANYTHING NEXT WEEK, AND WHEN LENDERS CHANGE THINGS THERE ARE FEW EXCEPTIONS GRANTED AND THESE ARE USUALLY ONLY FOR THOSE TRANSACTIONS SCHEDULED TO CLOSE WITHIN A FEW DAYS OF ANY NEW CHANGES MADE.

ZERO DOWN APPROVALS MAY NOW NEED 5 OR 10% DOWN. YOU MAY ALSO BE REQUIRED TO HAVE A HIGHER CREDIT SCORE WHICH IS TOUGH BECAUSE YOU CAN'T EXACTLY JUST RUN OUT AND GET ONE. THIS TAKES TIME, AND DO NOT TAKE ADVICE FROM JUST ANYONE WHEN IT COMES TO CREDIT. I CAN'T BEGIN TO TELL YOU HOW MANY TIMES THAT SOMEONES MOTHER, FATHER, BROTHER IN LAW OR FRIEND PUT THE DREAM OF HOME OWNERSHIP ON A SHELF FOR A PROSPECTIVE BUYER BY TRYING TO BE HELPFUL. CREDIT IS NOT JUST A SCORE. IT IS MUCH MORE COMPLEX THAN THAT. AND ANYONE TAKING ADVICE FROM SOMEONE ABOUT HOW TO IMPROVE THEIR CREDIT, I HAVE TWO RULES FOR YOU.

1 DON'T PAY FOR CREDIT ADVICE OR REPAIR.

2 DO NOT TAKE ADVICE FROM ANYONE NOT ACTIVLEY EMPLOYED IN THE LENDING BUSINESS. INCLUDING YOUR REALTOR.

SO NOW MAY BE THE LAST CHANCE YOU HAVE TO GET THAT HOME. GET APPROVED, START LOOKING, AND BE READY TO JUMP WHEN YOU FIND THE RIGHT HOUSE. YOU HAVE TO LIVE SOMEWHERE, AND YOU HAVE TO PAY. IT MAY AS WELL BE YOUR OWN HOME.