Qualifying For Mortgage Today
This BLOG On Qualifying For Mortgage Today Was Written By Gustan Cho
How difficult is it for Qualifying For Mortgage Today? Why do many home buyers ask this question on how difficult is it in qualifying for mortgage today? Main reason is that an average 3 bedroom to 4 bedroom home with 2 bathroom averages a price tag of $250,000. However, home prices vary from city to city, county to county, and state to state. California has one of the highest home prices in the nation followed by New York, New Jersey. Home prices in Florida, Texas, Illinois, Ohio, Virginia, Kansas, and Alabama are increasing double digit every year for the past years and there does not seem to be any signs of a slowdown. Many are concerned about home values increasing too so fast that they fear another real estate market crash. There are still many Americans who have not quite recovered from the 2008 Great Recession and many are very leery and careful in buying a new home. Qualifying For Mortgage Today is not as difficult as many Americans think it is. However, to qualify for a government mortgage loan or Fannie/Freddie Conventional Loan, you do need income. There are Non-QM Loans which are mortgage loans that are out-of-the-box and do not need to conform to agency guidelines but rates and terms are not favorable. You do not have to pay off outstanding collection accounts and charge off accounts to qualify for a FHA Loan unless the particular mortgage lender you go to has FHA Lender Overlays . Qualifying For Mortgage Today is difficult for self employed borrowers who have a great deal of write offs but it is easier for a wage earner on W-2 income and who has descent credit and has been timely on their monthly payments for the past 12 months. If you want to be pre-qualified and get pre-approved, contact Gustan Cho at 262-716-8151 or email Gustan Cho at email@example.com. Gustan Cho and his team is available 7 days a week, evenings, weekends, and holidays.
The Great Recession Of 2008 And Qualifying For Mortgage Today
The 2008 Credit Meltdown was the worst economic disaster in the history of the United States since the Great Depression and the aftermath of the Great Recession did affect Qualifying For Mortgage Today. Real estate values has never seen such a drop in such a short period of time where it affected every city, county, and every state in the nation. Most Americans believed that real estate was the safest investment to park their money. A home is most people’s biggest investment and many seniors count on their home as part of their investment portfolio. Many homeowners counted on the equity they had in their homes as part of their retirement. The Real Estate Crash of 2008 plummeted home values leaving homeowners with home loan balances that exceed the vlue of their properties. Americans who saw their home equity as a financial Safe Haven and left the workforce and depended on it hoping to sell their homes someday went back to the workforce. Homes that were once purchased for $500,000 were valued at $200,000. The whole real estate market came to abrupt standstill overnight and remained dormant for years to come. Millions of homeowners could no longer afford their mortgage payments due to being stuck on teaser adjustable mortgage rate loans where the initial mortgage payments were negative amortized and then when the teaser payment period was over, the new adjusted payment skyrocketed sometimes tripling the monthly payments. Home foreclosures, short sales, deed in lieu of foreclosures, and bankruptcies were never as high as it was during this period of time. Many real estate, credit, and mortgage industry professionals viewed the 2008 Real Estate and Mortgage Meltdown not just as a the Great Recession but another Great Depression.
Qualifying For Mortgage After Real Estate Crash Of 2008
The entire real estate, finance, and lending industry underwent a complete overhaul after the Real Estate Crash of 2008. The Sub-Prime mortgage market went completely obsolete. Many of us remember mortgage lending giants Washington Mutual and Countrywide Loans. Those two along with hundreds of other sub-prime mortgage companies went out of business overnight and caused hundreds of thousands of loan officers specializing in that sector to lose their jobs. The NMLS was created and Dodd Frank SAFE ACT was created and launched. The Consumer Financial Protection Bureau, CFPB, was created where this agency did not waste anytime in enforcing mortgage rules and regulations and did not mess around with violators with its stern fines and penalties where even the largest of mortgage banking firms feared them. Qualifying for a mortgage loan after the real estate crash of 2008 became tougher than ever before. The mortgage industry became so complex even licensed loan originators did not know everything. Just because you qualified for a FHA Loan, VA Loan, USDA, Loan, or Conventional Loan did not mean that you qualified with every mortgage lender. Every mortgage lender had its own lender overlays where even though FHA may say yes, the individual lender may say no and not approve the loan.