Good Mortgages Still Available
January 18, 2008
It seems as if there is nothing but bad news when it comes to the housing market, but that is not exactly true. There are actually some good bargains out there for those who qualify for them.
Most consumers know that lenders have tightened their credit guidelines in order to avoid making any more bad loans, but those consumers with a good credit history are not being penalized as much as the media might lead us to believe.
Steve Maizes who is the chief executive officer of the California office of Olympia West Mortgage puts it this way: “Banks still need to make loans if they want to make money. The key is in the creditworthiness of the borrower.”
Other experts agree. Those consumers who are employed and have a reasonably good credit record should find no problem in getting a home mortgage. What has changed, in most cases, are the mortgage terms. Most lenders have returned to the tried and tried approach of lending money. Many call this a return to basics.
Lenders want to see verifiable employment, pay stubs, and tax returns. They want to know that you can pay your bills on time and that you are a responsible borrower. None of this should be construed as bad news.
They also want to see credit scores that are in the neighborhood of 650 or higher. According to Les Berman, president of EB Financial, over half of the population of the US have scores that are that high.
For the first time home buyer, the types of loans that are available will fit most needs. Most home mortgage lenders are still writing adjustable-rate loans of five and seven years, after which rates shift to the prevailing rate. The popular 30-year mortgage is available as well