On a weekly basis I am getting 911 calls from Real Estate Agents at the 11th hour of a closing begging me for a miracle... Their client's previous financing (or the other agent's buyer's financing)has failed and they are in need of dire help... With all of the banking guideline changes that we have seen thus far in 2010, this blog post in overdue, and I apologize...
As the Federal Home Buyer Tax Credit approaches its April 30 end-date, there are numerous would-be home buyers throughout our area who are still working to get under contract.
Here is an important piece of advice to pass along: If their pre-qualification and/or pre-approval letter is more than 6 weeks old, it is strongly advised that they have their lender “Re-Approve” their Pre-Approval. Mortgage guidelines have been in flux and their original lender letter may now be invalid due to recent changes in qualification criteria.
For example, over the past half-dozen months, the majority of mortgage lenders have reduced their risk tolerance with respect to:
* Maximum debt-to-income ratios
* Minimum allowable credit scores
* Calculation of “assets in reserve”
For buyers of condominiums and co-ops, it is reported that the complex in its entirety has come under tougher scrutiny.
Mortgage applicants today MUST be in complete compliance and many new factors can now affect the qualification of the buyer. It takes more than just good income and credit to get approved in this market. It is strongly advised Agents inform their buyers revisit their qualifications. What qualified underwriting in January may not be adequate in May.
Being proactive will provide additional advantages: For instance, in the event, a mortgage re-pre-approval does happen to unearth an issue, it can be addressed immediately and resolved, rather than trying to clean up a mess and put fires out, causing potential delays and undo stress...
It is a good idea to advise buyers to have a discussion with their Agent and/or Loan Officer about their pre-qualification/pre-approval letter prior to making the offer on a home. If you are a Realtor and would like more information and FREE access to my daily "Tools You Can Use" tips to help you grow your business, you can follow me on facebook at NW Real Estate Agent Network. Enjoy!
As the Federal Home Buyer Tax Credit approaches its April 30 end-date, there are numerous would-be home buyers throughout our area who are still working to get under contract.
Here is an important piece of advice to pass along: If their pre-qualification and/or pre-approval letter is more than 6 weeks old, it is strongly advised that they have their lender “Re-Approve” their Pre-Approval. Mortgage guidelines have been in flux and their original lender letter may now be invalid due to recent changes in qualification criteria.
For example, over the past half-dozen months, the majority of mortgage lenders have reduced their risk tolerance with respect to:
* Maximum debt-to-income ratios
* Minimum allowable credit scores
* Calculation of “assets in reserve”
For buyers of condominiums and co-ops, it is reported that the complex in its entirety has come under tougher scrutiny.
Mortgage applicants today MUST be in complete compliance and many new factors can now affect the qualification of the buyer. It takes more than just good income and credit to get approved in this market. It is strongly advised Agents inform their buyers revisit their qualifications. What qualified underwriting in January may not be adequate in May.
Being proactive will provide additional advantages: For instance, in the event, a mortgage re-pre-approval does happen to unearth an issue, it can be addressed immediately and resolved, rather than trying to clean up a mess and put fires out, causing potential delays and undo stress...
It is a good idea to advise buyers to have a discussion with their Agent and/or Loan Officer about their pre-qualification/pre-approval letter prior to making the offer on a home. If you are a Realtor and would like more information and FREE access to my daily "Tools You Can Use" tips to help you grow your business, you can follow me on facebook at NW Real Estate Agent Network. Enjoy!
Dan
