Don’t be afraid of your lender!

Making a move is certainly not an easy process. Getting your current house ready to sell or timing your current lease term, deciding where you want to live and what type of house is right for you are all factors that can make for a stressful situation.  One factor that might be overblown in some peoples mind however is the challenge of obtaining a new mortgage loan. Worries about credit score and debt to income ratio qualification standards are usually what cause people the most distress and certainly there has been plenty of talk and press to suggest that lending criteria have tightened in recent years. The reality is that things just might not be as challenging as you imagine.  In a Washington Post Article dated April 25, 2014 it is reported that the loan origination software company Ellie Mae (isn’t that cute) reports that 33% of all new loans last month had borrower FICO scores under 700 up from 27% a year ago. Also reported was the fact that for FHA loans last month the average front end, which reflects housing costs only, debt to income ratio average was 28% with a total recurring debt to income ratio at 41% which is no more or less stringent that the standard that has been applied for years.  Coupled with 30 year conventional and FHA rates at 4.375% and 3.75% respectively there really is not much to be afraid of. Source: “Mortgages Are Easier to Obtain Than Many Prospective Home Buyers Might Expect,” The Washington Post (April 25, 2014) Remember whether buying or selling, moving up or downsizing, Lincoln or Omaha, the Vaccaros; Paul & Susan, stand ready to assist you, your family, friends and co-workers.  Call or email us today!  Lincoln (402)817-0355 , Omaha (402)577-0820,  (Paul & Susan Vaccaro – CBSHome Real Estate 15950 W Dodge Road, Suite 200, Omaha, NE 68118 – Woods Bros Realty 3737 S 27th Street, Lincoln, NE  68502.

Leave a comment