I have been a fulltime Boise real estate agent for over six years. Believe me, finding the right home is a cinch compared to getting your loan approved. Without question, my clients have shed more tears and I’ve pulled out a lot more hair over loan issues than real estate issues.
In the mid-2000s, sub-prime lending were very popular. Back then, people were able to take advantage of the real estate market by loaning money or refinancing homes of up to 4 units with hardly any money down or even without any down payment. Sometimes their applications for refinancing or loans could be approved without any proof of income of bad credit. Their loans would then be sold to Wall Street and insured by AIG. But things have changed now and mortgage lenders have made it more difficult to get loans or apply for refinancing. These loans are not granted anymore. Lenders are now making sure that a loan applicant will be able to repay their loans. Financial backgrounds and the ability to pay are being checked thoroughly before loan approval. It looks like financial institutions are playing it safe this time to avoid repeating past mistakes. But this could be far from the truth. This article explain why FHA loans are the next big craze.
If you have bad credit and have been thinking of buying a house or refinancing your current mortgage you have probably run into a few problems. With the economy in it’s current recession, lenders have tightened down even more on lending requirements and have raised the credit score requirements to qualify for mortgage loans. Are [...]
The first step in preparing to purchase home or to refinance your current mortgage is to understand what a mortgage lender expects from you the borrower. Too often people just call a bank to see if they qualify for a bad credit mortgage without doing any research on their own about their own credit situation. [...]