Is Qualifying For A Mortgage In 2014 Going To Be Harder?

As a Real estate agent in the Charlotte, NC. area I hear a lot of home buyers starting to tell me they do not know if they will be able to qualify for a government backed mortgage in 2014 with the new laws going into effect. Living in the second largest banking city in the United States has some benefits and some disadvantages. One is knowing a lot of different mortgage personal to get answers to those questions. The bad is that when the banks begin to cut back staff in their mortgage departments it is all over the headline news. So, how does the new law affect home buyers looking to buy a home come 2014? Well, first technically it will be a little harder to get a loan. But not like most people think. The law was designed to help prevent another meltdown like we are just now coming out of and allow families to stay in their homes instead of losing it because of bad loans. The banks are asked to verify a little more information and keep ratios in line with what they are supposed to be doing now on government backed loans. Fortunately, most lenders have been working within these guidelines for a few years already. One fallacy that is commonly heard is that unless you have a 750+ credit score and 20% down payment you may not be able to qualify for a mortgage. Of all the lenders I spoke to that is not true. Honestly, I work with lenders who are willing to do FHA loans with 3.5% down payment and credit scores as low as 580. Most lenders will not even look at ones with credit scores below 640. I have scoured the internet and found and work with select lenders depending on the program you need. But I have closed loans with credit scores a low as 580 on a FHA loan and that will not change. Second, if you receive a regular paycheck and can show a steady job history for at least two years with W-2'S your file should move through underwriting a lot easier than in the past. Because they have certain guidelines to flow making it less subjective to the underwriter and more uniform across the board. The down side is if you are self-employed. It may be a little more documentation on your part to qualify for a mortgage with the new rules. Last, what if you are a person with no credit history? Or an international credit history? Can you still get a mortgage now? Yes. The lenders I use still work with no credit score files and limited credit history files as well as international files.... So, despite all the negative talk around the mortgage industry and how it will be almost impossible to get a mortgage in 2014...the truth is it may actually be easier to qualify and move through the underwriting process than it has been in the last few years. Dave diCecco Realtor/Broker Helen Adams Realty Cell: 704-519-7895 ddicecco@helenadamsrealty.com www.davedicecco.com