| How A Home Mortgage Loan Should Help You |
| Articles - Mortgage |
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Over the past few years we have seen the virtual desiccation of both the housing markets and all large financial institutions. For anyone who hopes to get a Georgia new home mortgage in this new world order, they might be terribly disappointed, if not totally shocked. Not long ago a 620 FICO score, steady income, and normal well paid debts all helped put you in just about any home you wanted. No more!
Over the past few years we have seen the virtual desiccation of both the housing markets and all large financial institutions. For anyone who hopes to get a Georgia home mortgage in this new world order, they might be terribly disappointed, if not totally shocked. Not long ago a 620 FICO score, steady income, and normal well paid debts all helped put you in just about any home you wanted. No more! That's not to say that lenders are refusing everyone for a Georgia mortgage. It does, however, take almost perfect credit and larger than normal down payments. It also requires plenty of backup documentation to verify everything on your application. No more 'no verification' loans! Also seemingly extinct now is to have your lender pay off your credit cards in order to improve your income to debt ratio. This was almost de rigueur not long ago. Now, forget about! If you owe too much, you just don't get approved ' it's as easy as that. If a 20% down payment will be an issue, you might find yourself priced completely out of the market. Even though housing prices have fallen dramatically over the past few years, your median priced home in most markets is still hovering around $200,000, bringing your down payment alone to $40,000. This doesn't even take into consideration closing costs and residual cash the lender expects you to keep on hand for emergencies. If you believe you have what it takes to get the house you want, you'd better be very prepared before filling out the actual paperwork with a lender. Not only do lenders have different requirements, they also have different definitions. For instance, one lender defines 'income' as your 'adjusted gross income' from your previous year's tax statement. Considering this figure could actually be 0, it would be almost impossible for anyone to ever qualify for a lone with this company. Also, make certain you can provide every piece of substantiating documentation they can ask for. At least a year's worth of financial documents are a must, and if you have to pay for duplicates to be mailed out, do it. Get your tax returns together, recent pay stubs, and even copies of your IDs. Be prepared for some odd questions, too, such as 'where did this $2,627 come from?' because if it looks suspicious, that's just one more reason for them to turn you down. Interview lenders like they interview you. It's a two way street and they will be be happy to answer questions. Make sure you are dealing with a lender that has a good reputation. Before giving him any type of application fee or personal information, get a good understanding of what they look for in a new loan package. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. When talking to Georgia loan mortgage lenders. If you happen to be dealing with a fixed mortgage broker. |