Three Steps To Getting The Best Mortgage Deals With Bad Credit In Today’s Mortgage Market

October 4, 2009 · Posted in Mortgages · Comments Off 

Today’s mortgage market is different than anyone has ever seen in the history of mortgages. Getting your best mortgage deal may require a little homework on your part, but they are out there. Many of the mortgage programs that used to be available to home owners and future home owners are simply gone. However in the midst of this market fiasco we are seeing interest rates at the absolute lowest we have seen in years. The problem is the programs to access these rates have been narrowed down so much that only the people with the best credit can qualify for them, at least that’s the conception.

The best deals on mortgages are still out there for most people with “less than perfect” credit. Our old friend FHA has been dusted off and has now moved to first place over the traditional mortgage champs, Fannie Mae and Freddie Mac. The reason is for this is the collapse of the subprime market. Although FHA is not a subprime lender it is a common sense mortgage where people with less than perfect credit can access to the best mortgage deals.

When I say “common sense” I mean that a real underwriter will look at the loan in most cases and make a determination whether or not the borrower merits a loan. With the two other mortgage giants Fannie and Freddie, the underwriters follow an automated computer model for underwriting that they rarely stray from. Not so with FHA, as I mentioned earlier the underwriter is looking for “compensating factors” that can be used to counter the negative items on your credit report i.e. a collection. In general an FHA underwriter is looking for these three qualities in a borrower. Read more

Tags: , , , , , , ,

Getting a Mortgage in 2009

September 2, 2009 · Posted in Mortgages · Comments Off 

With the economy in trouble and the declining housing market all over the news, it might surprise you that now is an excellent time to get a mortgage. However, if your credit is bad, you will likely not qualify. Borrowers with decent credit can get an excellent deal on a fixed-rate, 30-year conforming mortgage. To qualify, you’ll need a good FICO score, a reasonable debt burden, and proof of continuing income.

Mortgage rates will likely dip even lower in 2009, bringing up the question of whether it’s better to borrow now or wait for an even better rate. Mortgage experts tend to disagree on this issue. In simple terms: if you like to gamble, then wait. If you lose sleep at night fretting that rates will soon rise, then borrow now.

Here are some things to consider about the current mortgage market:

Comparison Shop, Especially Now

In a typical economy, one loan is pretty much the same as any other, since most interest rates on 30-year fixed loans are grouped within about a quarter of a percentage point. This is not so today. With the uncertain economy, lenders vary greatly in terms of how much risk they’re willing to assume in loaning money. This is why it’s important to shop around. You’ll want to keep checking often, since home loan rates are continually in flux.

Lock in a Fixed Rate for New Loans Read more

Tags: , , , , , , ,