Jeff’s Carlsbad Blog for First Time Home Buyers

Buyers Take Heed on Getting Your Loan

Posted in Financial,Mortgage info by Jeff Dowler on March 20, 2007

hot-issue.gifI have emphasized, on more than one occasion, the importance of getting pre-approved before you get started on your home search. No point in wasting time looking at homes, only to find out your credit is a problem, or you can only qualify for homes that are far less than what you want. So do it now!

loans_jpg.jpgBut there is now an even more important urgency to this. With the recent problems in the sub-prime market, 100% financing, and more, there are buyers who now MAY NOT be able to get pre-approved, even though they were in the past.

Other buyers MAY find that the program they were pre-approved for may NO LONGER be available to them.

So check with your lender to make sure things are still OK with you and your pre-approval. You do not want go through the offer process, get it accepted, and then find that you cannot get your loan as planned. Not only may you lose your prospective new home, but you put your downpayment money at risk.

However, DON’T JUMP to conclusions, with all the hoopla about the mortgage industry right now, that you will not qualify for a loan. Take a deep breath, gather your information, and talk to a reputable mortgage broker (preferably one that is referred to you) and find out the real deal on your situation.

Another tidbit – FHA is getting more relaxed about their requirements, easier to work with, and may be changing the cap on the loan limit (at least that is what folks are expecting to happen). I expect we will see other measures in place to deal with the problems that have arisen recently, and possible changes in  loan programs and requirements from the big guys like Fannie Mae. Stay tuned.


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