Back to Basics for Cary NC Home Loans

As you have probably read and heard many times, the mortgage business has been going through some changes here in Cary NC and throughout the country.  Just last year we were able to do home loans for clients without jobs, without a down payment, and without a good payment history.  Lending standards had become very aggressive. Well, that’s over.  Most of those real estate loans have not performed well and the market for those has gone away. We’re back to basics.

NO DOC LOANS ARE NO LONGER AVAILABLE

Borrowers are no longer able to secure no documentation or stated income loans. We now need paystubs or tax returns.  It’s still possible to get approvals with budgets that are stretched though.  Good credit and a good down payment usually overcomes income issues.

Down payments are back in style. Most home loans require at least 5% down again.  Government sponsored loans like FHA and VA loans require less, but have restrictions.

CREDIT SCORES ARE CRITICAL

Good credit is critical.  There is a great website that explains credit scoring.  Please visit www.myfico.com. Lower scores can cost you money or even an approval.  It’s important to know where you are.  We would be glad to give you a free credit report with your three credit scores.  Mortgage companies use the middle score.

Pre-approvals are good to have when making an offer. It’s easy and free too.  All we need is to pull your credit report, get your paystubs, and bank statements to prove you have your down payment.  It takes less than a day to get an approval and you’re done except for the appraisal.

So, before you get in a real estate agents car to view properties, call me for a quick pre-approval so that you know you can qualify when you find your dream home.

Eric Routh
Loan Officer/ESI
919-678-1133

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