Top Three Mortgage Qualification Myths [mortgageloan-processor.blogspot.com]
LeahCoss.ca Man 1 So Morey covered off what a conventional mortgage is, but there's... and all of these changes that apply as we've been talking with high ratios, so the government mandated changes apply to things, the three different changes: the investments, the refinance and the amount of down payment that's required. However, just because that only applies to 80 percent financing or more, so less than 20 percent down, there's actually a lot of banks that are going to follow those guidelines all the way down the road. So it doesn't matter if you've got 35, 40, 50 percent down, a lot of banks are still going to follow these new guidelines. The reason is kind of complicated. It involves how the banks raise their money in the markets and whatnot. But if they're going to be doing that, you can see that these changes. And there's a lot of lenders that are going to be following that. I'd say half or more. So it's going to have a lot of impact for any loans of value even though the mandated change only implies to 20 percent down or less. So, rental income changes. In Vancouver this is huge because we've heard it's the percentage of properties, especially condo market rentals. It's definitely the most dramatic change. Ironically, this one isn't even mandated. This is simply something that's come down through CMHC and then all the other insurers have jumped on board with similar policies; not identical. So we had three different insurers we talked about. We're not going to get ...
mortgageloan-processor.blogspot.com Pt 2 - Presentation on New Mortgage Qualification Rules
“The ECHO Button makes this possible by guiding borrowers who don't qualify for some financial reason through the HomeTrac program. It's designed specifically to help borrowers get approved for a mortgage and not just improve their credit score. Mortech Integrates with HomeTrac's ECHO Button
Mortgage qualification has always been a piece of information that varies from lender to lender. Although, these qualifications can also change with the real estate/housing market. Even with these changes, and the differentiations between lenders that do exist, there are some myths about mortgage qualifications that need to be set straight.
It is always in the best interest of any buyer of a new home or new home construction project, to understand the facts about mortgage qualifications. Here are the top three mortgage qualification myths, with respects to residential real estate:
Perfect Credit Is Necessary To Qualify:Â FALSE
There are very few people in the world that actually obtain a perfect credit scores. In this market, even a perfect credit score won’t guarantee a qualification. There are several other factors that affect the final decision.
Some of these very factors may include, but are not limited to: available credit, past loan payments being paid on time, two to three years of steady employment income, etc. Every scenario is different, and every lender has their own criteria. Although, it is falsely stated that just having a perfect credit score will qualify an individual for a mortgage.
If I Have A Bankruptcy On My Credit I Cannot Get Qualified:Â FALSE
The number of individuals or partnerships that actually have a bankruptcy, or even foreclosure on their credit report, is consistently increasing. The fact that you are one of these individuals does not mean you absolutely cannot get qualified.
In terms of purchasing a foreclosure, a short sale or new home construction project, it may be a little more difficult to qualify. Although for any other home, an individual has just as much a chance as any.Â
There are many other factors that will be considered when a bankruptcy falls on an individual’s credit score, when applying for a mortgage. Items such as available credit, such as unused credit card limits, etc can be helpful. Other considerations are noted if an individual has attempted to rebuilt their credit over time. These considerations can include on-time payments of current loans or utility bills, as well as many additional factors.
I Should Find A House First, Then Qualify:Â FALSE
Qualifying for a mortgage can take anywhere from a day to a few weeks. Depending on the lender, there is an in-depth analysis completed with respects to: credit, work history, payments, etc. If you do end up finding the perfect home, whether it be in San Francisco, or if you are considering Nacogdoches real estate, its always better to be pre-approved.
There are many ‘happenings’ that can occur when qualifying for a mortgage after you have already found the home of your dreams. Occurrences like a lender only qualifying you for less than the cost of the house you are interested in. Or perhaps, there is also somebody else interested in your dream home that is already pre-qualified, and can make an offer first. Getting qualified for a mortgage prior to finding housing of interest, can save a heap of time and stress in the long-run. Recommend Top Three Mortgage Qualification Myths Topics
