The housing industry and the mortgage side of the housing industry in particular is seeing a ton of changes.
Available loan programs have dropped down to just a few with no new programs in the foreseeable future, no one really knows what home prices will do, rates are at just about their lowest point in recorded history all the while the qualifying guidelines are becoming more and more strict.
Qualifying guidelines and the tightening up of those guidelines have been the major limiting factor in keeping prospective buyers from realizing their dream of owning a home.
It is my opinion that these guidelines did need to be tightened up as I feel the seeming lack of guidelines a few years ago allowed loans to be made in situations where the borrower really did not have the wherewithal to pay the loan back.
Of course the borrowers were done no service by the plethora of loan agents who didn’t know their head from their big toe and couldn’t or would not explain to the borrowers what the loan they were getting into really meant in the long run.
Some of what we are seeing presently with the guidelines is kind of a kneejerk reaction to the that previous leniency .
All that being said here is another one of the changes that will be coming next week with many of the lenders offering the FHA product.
The minimum fico score accepted by many lenders will now be going up from 620 to 640.
20 points on your credit score can be a tough hill to climb but it is definitely not insurmountable.
It can take a few months to get that score up to where it needs to be if you’re not already there. Don’t let something like this keep you from pursuing your dream of owning a home though.
When I talk to perspective borrowers I always let them know that a pre-approval is the first step you should take.
If you make a offer on a home before you have the pre-approval done you are essentially putting the cart before the horse. What happens if your offer gets accepted and then you go to the bank and find that you don’t actually qualify for one reason or another.
My role in the pre-approval process is hopefully to tell you right away that yes you are pre-approved. If however in putting the pre-approval together I find that you are not qualified my role changes and then you and I will sit down and work out a game plan to get you to where you need to be.
After that we will get you connected with a realtor who shares my passion for educating you and steering you in the right direction.
It can’t be said enough, working with a great team is the best way to see that you are successful in your bid to purchase the home of your dreams.