Mortgage Qualifications Getting Tighter
Posted: November 06, 2009
Qualifying to get a mortgage has never been considered an easy process, but with the Federal Reserve's issuance of new rules, it's now become even more difficult for homeowners to qualify. The new rules implemented to protect homeowners from "unfair and deceptive practices" are now creating more hoops for a prospective buyer to jump through, and making credit standards even higher.
Areas with substantially falling home prices, like Naples, Bonita Springs, Fort Myers, and Cape Coral tend to feel the brunt. When properties go down dramatically in price, it's only natural that there will be an increase in purchases.
A good way to stay ahead of the game is to keep your credit score as high as possible, and your credit reports clean. Even a few seemingly "minor" errors or mistakes can make the difference between getting a mortgage. If your credit needs some first aid, you may benefit from utilizing a reputable credit counselor - they will be able to lay out a reasonable plan of attack to get your credit back on track. Keeping your debt-to-credit ratio (amount of debt vs. amount of credit) is also key - a respectable goal to aim for would be around 30% debt to 70% credit.
Additionally, saving as much money as you can for a down payment can show that you are financially stable, and ready to handle the kind of responsibility a mortgage entails.
As always, please feel free to call me at 239-357-9558 with any of your Real Estate needs or questions. Rgds, Jay
Information for this article provided by Florida Realtors.
Comments(0)
Post a comment
|
