This is an interview I'll be publishing in two parts: look for the second half later this week!
My guest is Kenny Leather, Princeton Capital Loan Consultant. I hope he can clear up some issues we are all wondering about...
There's been a lot of recent news about changes in the mortgage industry, for instance qualifying standards for certain loans are tightening. Let's talk about how the following groups will be affected by some of these changes:
How does it affect buyers looking for a home?
"Tightening of underwriting criteria is going to affect some buyers. Buyers will have to have more money for a down payment in order to get into a house. With that said, zero down payment programs are available, but the guidelines are much tighter than in the past few years."
How does it affect buyers already in contract?
"If you are in contract, always check to make sure your pre-approval is still good, because guidelines have been changing daily, and banks have been closing weekly."
"If a seller is reviewing an offer with a buyer's pre-approval, it is a good idea to get a second opinion from not only the realtor, but also a loan consultant. As for the buyers, they should call me (chuckles) to get a pre-approval. Sellers should always have the offers with a pre-approval double checked, especially if the offer is less than 10% down."
Why is that?
"Because many programs that require less than 10% down payment that are no-income qualifying have disappeared in the last month."
Interested in learning how Kenny and I can help you buy or sell real estate? We will be happy to hear from you!
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