As the current economic credit and financial crises upfolds, people tend to want to know one thing: Can I still get a loan to buy a house? This is the bottom line question I'm hearing from my clients.
The answer is "Yes", but with caveats. You must be ready, willing and able to pony up the proof that you're a good risk for paying back the loan. Banks are running scared. There is money out there, and there are some banks that are still lending (though few and far between). Your must show a fairly high credit score (something near or above 700), and you must show proof of income (and it MUST be legitimate). Lenders are pickier and choosier than ever (and with good reason) and want more stringest and verifiable proof from potential borrowers.
If you DO qualify for a loan and you see an interest rate that you like, I would recommend locking it in as quickly as possible . With all of the economic issues at hand right now, banks are tightening up on rates and it will be impossible to predict where rates are going to go over the course of the next months. There is a lot going on right now. We have an election that is little less than a month away and there is also the fate of the Fed's bailout or rescure plan (whatever they're calling it these days) that will have a lot of impact on mortgage rates over the next month. Rates are still relatively low - and there is no guarantee that they will stay low or go lower. Better to be safe than sorry.
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