I have been talking to friends, and many are concerned that they would not qualify for a loan, due to the recent news of mortgage companies closing. Yes, approximately 120 mortgage companies closed, but there are many other companies still providing loan money for qualified purchasers. They are also continuing to refinance current homeowners.
The type of loan that created this problem, as I discussed a while back, is the sub-prime loan. It may be harder to qualify for a loan today, but many of the sub-prime loans had a high interest ARM. Qualifying for a loan with difficult credit only resulted in greater cost, meaning that many homeowners got into a house, but can no longer afford the mortgage payment.
If you have good credit, money in the bank, and a desire to purchase a home, you are a good candidate to apply for a 30 year fixed mortgage with a good interest rate. Last week, the interest rate ranged from 6.625% to 7.125% without having to pay points. An individual borrower's rate will depend upon loan size and creditworthiness.
Unsure of your creditworthiness? Call me, and I will be glad to provide the name of some very reputable mortgage brokers and bankers.
