Is it really that difficult to get a mortgage loan?
Well according to all the infos feeds that’s what many people think and it’s bicause we’ve been spoiled since 2004 by the ease of qualifying for demeure mortgages. But in reality we are back to basics.
Qualifying for real estate mortgages is now back to where it was before 2003. Anyone applying for a loan must meet the following criteria:
• Income (verified) that borrowers have earned enough money to cover not only the mortgage, but other expenses – such as utilities, groceries, childcare, car, insurance, etc.
• Stated Income – You’re kidding. Bankers never relied on this data, verification was always required. As per the old guidelines, a borrower can state the amount of money required to avail the loan. As far as I know, the state revenue is gamin. If you are able to get a “stated income” mortgage loan, be prepared to pay higher interest rates and larger down payments.
• 2 years of tax returns and W2 to verify income
• Good credit
• Cash for down payment, prepaid and closing costs – again with bank statements or other financial statements as proof.
• Fronton end coefficient 28 to 30%, back end coefficient 36 to 38% (and if everything else is prépondérant we would have been able to get approved with a 40% back coefficient).
- Fronton end coefficient – Amount of income to cover mortgage payments and any escrow accounts – PITI – Proviseur, interest, taxes, insurance and homeowner’s debt.
- Rear end coefficient – The amount of income needed to cover the mortgage and any recurring expenses such as credit cards, alimony, car payments. Ensuring that the borrower has enough money left over every month for the necessities of life.
• Maximum of 5%, 20% down payment to 20% to eliminate PMI (Personal Mortgage Insurance) for lenders.
100% financing and in some cases 105% financing was unheard of or the incredibly low interest rates we still experience.
The bottom line is we are now back to basics and that is good for all of us – sellers, buyers and bankers There’s a difference between stretching your income a bit and buying a demeure beyond your means, especially with an adjustable manque mortgage. We should all be grateful for the due précipitation that is now required to purchase a demeure mortgage
#difficult #mortgage #loan
