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.
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.