If you’ve opened a newspaper or watched the news in the past month or so, you’ve seen a lot of news about sub-prime mortgages and what is happening with both the lenders that give them and the buyers that have used them to purchase homes. These sub-prime loans have been called risky and basically unacceptable.
In many cases, they might have been just that. Someone making $3,000 a month shouldn’t be able to qualify for a mortgage of $2,000 a month. There are many buyers that trusted their lender to make the right decisions for them and not let them get a loan if they couldn’t afford it. That’s where the trust comes in. You need to have a mortgage professional that looks to your financial picture as a whole, not just one piece.
100 percent financing is also taking a hit with lenders and many lenders have been changing their guidelines and are no longer offering 100 percent loans. This is unfortunate, as the prices of homes have increased so much over the past 10 years. A 5 percent down payment today might be $27,000 where 10 years ago it would have been closer to $15,000. Saving $15,000 for most people is difficult and now if you take the down payment and closing costs, you could be looking at nearly $33,000 or more. The average price of a single-family home in the United States has appreciated 5.4 percent annually over the past 25 years. Due to these increases, buyers have been looking for lenders to be creative with their loans and programs so that everyone can realize have the dream of home ownership. The lenders came up with the creative loans, but you need to have a mortgage professional who can tell you which of the loans are the right ones for your financial future and steer you away from the ones that can make you lose your hard earned money and possibly your home.
At Loan Connectors, we take pride in our work and the service we provide to our clients. We are offering a free mortgage evaluation to anyone that needs us to look at their current financing. Our doors are always open to our clients, even after your loan closes.
Loan Connectors is a member of the California Association of Mortgage Brokers, The SCV Chamber of Commerce, Woman Entrepreneurs of Santa Clarita and various networking groups.
For more details on this subject or further information, please contact Loan Connectors at 661-295-0555 or visit www.loanconnectors.com .