If you need assistance, please call 914-290-5258

Changes in mortgage lending add to buyers' challenges.

Tuesday, June 30, 2020   /   by Vanessa Saunders

Changes in mortgage lending add to buyers' challenges.


Last year at this time, mortgages in forbearance programs represented 1% of all mortgages. As of May 10, 2020, more than 4 million borrowers were able to declare financial hardship and delay making payments on their loans for up to a year. Things are a-changin' in the mortgage world. The Covid-19 pandemic and economic shutdown have left the mortgage markets bubbling with volatility, and lenders are changing to meet the new normal.

Is it still possible to get a mortgage? The answer is yes, but some of the rules have changed.

Lenders are asking for higher qualification thresholds.
Expect more hoops to jump through, especially on mortgages that are deemed more "risky" than others - jumbo loans, high-balance conforming loans and investment property loans.
(A conforming loan is a mortgage that is equal to or less than the dollar amount established by the limit set by the Federal Housing Finance Agency ( (FHFA) and meets the funding criteria of Freddie Mac and Fannie Mae.) Buyers will need credit scores above 680, a steady job, more cash in hand an an ability to close a deal quickly.

Lenders are swamped with applications.
Expect for your application to take longer than normal. Volume is high throughout the Hudson Valley, and lenders are struggling to keep up with the paperwork.

Lack of clarity keeps the market jumpy.
People are nervous about the future, and this has made mortgage rates trend lower on average, with occasional bumps in interest.

Five questions buyers should ask themselves before they go home shopping:

1. What kind of mortgage do you need? Conventional? Or do you qualify for a federally backed FHA or VA loan? Also, will you have enough in savings to make mortgage payments if the economy fails to rebound?

2. How secure is your current income or job? Can you guarantee a lender you have a reliable income?

3. What is your credit score? Visit Equifax, Experian, or TransUnion for your credit report, to see if you qualify for a favorable loan and interest rate. Like your income, will your credit-worthiness grow or at least remain steady for the term of the mortgage?

4. Are you in a position to close quickly? Market fluctuations could mean your qualification threshold may change.

5. Put together a loan application file with all the necessary paperwork (pay stubs, credit reports, W-2 forms, tax returns and bank statements before applying for a mortgage. (Your loan originator will be able to supply you with a complete list of documents you'll need to provide.)

Don't be discouraged. Getting a mortgage isn't impossible. There are plenty of resources available, and many have near record low interest rates. Finding a good mortgage banker who can show you your options and guide you through the process is a great way to start your hunt for the perfect house.


  hudson valley real estate, hudson valley home, buying a home, hudson valley home owners, 'urb to 'burb, mortgage rates, first time home buyer, mortgage, va loans

Global Property Systems
Vanessa Saunders MBA MIMC CIPS - NYS RE Principal Broker
56 Lafayette Avenue Suite 320
White Plains, NY 10603
914-290-5258


NY.png

The data relating to real estate for sale or lease on this web site comes in part from MHMLS. Real estate listings held by brokerage firms other than Vanessa Saunders - Global Property Systems are marked with the MHMLS logo or an abbreviated logo and detailed information about them includes the name of the listing broker. The information appearing herein has not been verified by the Mid-Hudson Multiple Listing Service, Inc. or by any individual(s) who may be affiliated with said entity, all of whom hereby collectively and severally disclaim any and all responsibility for the accuracy of the information appearing at this web site, at any time or from time to time. All such information should be independently verified by the recipient of such data. This data is not warranted for any purpose. ©2020 Mid-Hudson Multiple Listing Service, Inc. All rights reserved.
The data relating to real estate for sale or lease on this web site comes in part from One Key, Inc. Real estate listings held by brokerage firms other than Vanessa Saunders - Global Property Systems are marked with the One Key, Inc logo or an abbreviated logo and detailed information about them includes the name of the listing broker.

The information appearing herein has not been verified by One Key, Inc or by any individual(s) who may be affiliated with said entities, all of whom hereby collectively and severally disclaim any and all responsibility for the accuracy of the information appearing at this web site, at any time or from time to time. All such information should be independently verified by the recipient of such data. This data is not warranted for any purpose.

©2020 One Key, Inc. All rights reserved.

The data relating to real estate on this website comes, in part, through the IDX of the Multiple Listing Service of Ulster County, Inc. Real estate listings held by brokerage firms other than Vanessa Saunders - Global Property Systems are marked with the IDX logo and detailed information about them includes the name of the listing broker.
This site powered by CINC: www.cincpro.com