IIf you are a new borrower or if you have owned many
homes, the wealth of information - and misinformation
- about mortgages in today's market can feel overwhelming.
Knowing where to start and how to find accurate information
can make or break your home buying experience.
Learn
all you can about current mortgage financing before
you apply with a lender to avoid unpleasant and
potentially costly surprises. Be well informed about
things like:
Appraisals
- Recent legislation called the Appraisal Independence
Rules (AIR) has changed the appraisal process. Lenders
are prevented from influencing appraisers as to
the value of a property and appraisers are usually
conservative in their estimates. With declining
home values, many homes are not worth what you might
expect.
.
Credit Scores - Requirements for
a good credit "FICO" score have gotten
much tighter. Many loans require a 660 score or
higher, although some programs are available for
borrowers with lower scores. Check your credit before
you apply for a loan, and talk with your lender
about programs that might work for you if your credit
is less than ideal.
Interest
Rates - Interest rates can change quickly.
We've enjoyed recent times of record low rates,
allowing many people to refinance or buy a home
and save thousands. Nevertheless, the financial
markets are still somewhat uncertain and unexpected
financial news may trigger a major swing in the
markets.
