Having trouble getting a mortgage? (mortgage broker, credit, loans)

[B Wagner]

In this last eighteen months we have seen the mortgage industry go through some tremendous cycles. The worst is to be coming soon with some drastic reorganizing and regulating reform for the banking industry. People who need to get mortgages need to be looking at different sources for their mortgage needs than turning to their local banks.

We have certainly seen that mortgage brokers are the alternative that people, wanting to purchase a home now, during this buyer’s market, need. Mortgage brokers have several dozen alternative sources for mortgages, being able to shop around for the best rates among several sources.

Going to your bank for mortgage services is a limited resource and with the tightening supply of money available for banks to run on, mortgages are not the banks main concern. They have only a few packages to offer and if you don’t fit their profile, you will just be turned down for credit through their institution.

Going to a mortgage broker will give you the best option and with so many different mortgage packages available now, it only makes sense that people should be looking towards the broker for all their mortgage needs.

Mortgage brokers are changing, with most doing their own in house underwriting, so if you are close to being able to qualify, they can give you the nod to go ahead rather than having to rely on an independent company to approve you. All brokers do not have this, so when you are calling and shopping brokers ask if they have this capability.

The most popular loans now are FHA, government insured loans which can get you into a home with as little as 3.5% down. There home requirements are a little stricter, but for you the buyer, that is a good thing. You will know when you move in that the house had to meet FHA guidelines in order for you to obtain the mortgage. This also allows 1st time homebuyers the ability to buy a home and makes it easier to come up with the down payment on their first home.

There is also a program called Expresspath here in Georgia that Fannie Mae is using to get homebuyers into their homes with only $100 down. It requires some work by the buyer, but allows people to help buy up the glut of homes that Fannie Mae has acquired.

If you are interested in HUD homes, you as a buyer or owner occupant can buy a HUD home for $100 down also. HUD uses FHA to finance their homes and offer a package called FHA 203K Express for buying distressed HUD homes. You can purchase the home for the purchase price, and then they will allow you to borrow up to $35,000 to repair the home. Once repaired and inspected they merge the two loans into one thirty year fixed loan.

[atlbravo]

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