Mortgage rates are still near historic lows; the supply of housing units available for purchase is very high; the mortgage lenders are awash in money to lend, so why does the real estate market appear to be stuck? And, what can you do about it when you want to buy a home?First, today mortgage lenders are strongly focused on œQuality; they want well-presented, full-documentation loan applications. The no-income-verification loans (aka œLiar Loans) are long gone; as are the days of scant asset documentation and questionable credit (sub-prime) loans. Therefore, fewer consumers are now approved for a mortgage.
So, focus on what you can control, such as, most importantly, your credit. First, check your credit early on, even before you look at houses. Work with your mortgage lender to understand your credit score, and how you may increase it to get approved for a mortgage, or to get a better rate.
Next, if you are also selling a home, you can control how it looks. Work with your Realtor to get it into good shape so you get the best possible price. That gives you more funds for your purchase. Values have generally dropped from their highs; accept that, as the market does not lie. Also the more you put down, the better your rate may be.
Thanks to Svein Reichborn-Kjennerud, Mortgage Banker with Affiliated Financial Group, LLC for this great information! Svein can be reached at 720-880-2525 or svein@AFG123.com. Restrictions apply when getting a loan. Rates vary and subject to change.
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