workingthepuzzle.com

(PRWEB) December 5, 2011

In a recent study of RE / MAX in northern Illinois, the officers said that although this is a great time to buy a home because of large inventory and mortgage rates obtain approval for the historically low mortgage finance has become a task longer and more difficult.

mortgage interest rates in late November hovered near historic lows, the relationship with Freddie Mac, the interest rate for a period of 30 years fixed rate mortgage at 4 per cent while the rate for loans at 15 year fixed rate hit 3.31 percent. At the same time, the owners are willing to negotiate on everything from the final sale price for the dates of closure and repair. This means that buyers can expect to pay less for single-family homes and condominiums today, even those in a privileged position throughout northern Illinois.

But there is a challenge that customers face today. Obtain approval for mortgage financing

“It used to be that if you could not breathe and had a pulse you can buy a house,” said Sharon Esslinger, managing broker / owner of Crossroads Country RE / MAX in Purple. “This is not the case. Things are tighter, more rigid today. Getting a loan today requires more patience.

The good news is that the more negative rumors are not true: Lenders are, in fact, continuing to lend money to qualified buyers. And these buyers are concerned about credit and payment also have a solid option for FHA financing, which has gradually become a popular choice among borrowers. But it is true that they can qualify for a mortgage is more difficult today than it was at the height of the building boom.

RE / MAX in Illinois now say that buyers should be prepared for the reality of new loans. Buyers with good credit, solid income and debt-to-documents to support their claims of the revenues will still be able to find favorable mortgages, and true? The discovery of historically low interest rates. Buyers only have to be patient and wait to make a lot of paperwork before closing their loans.

“It ‘really new. Getting a loan has never been a slam dunk back in the pre-boom days,” said Mark Zipperer, broker / owner of RE / MAX the edge of Chicago. “Were you nervous about getting a loan . You have everything you need to do because you have someone else’s money. make sure that your finances are in order, you pay your credit card debt has thrown away the money and were ready to go. During the boom, all programming is gone. During the boom, we joked that we can write a request for your mortgage company and banks close. “

Today, buyers expect to benefit from low mortgage interest rates must first have a solid credit rating. Most conventional lenders now reserve their best rates for borrowers with credit scores of 740 or more on the popular FICO credit score scale.

Purchasers must also have a low

credit card debt and income levels that are not only sufficient to cover their monthly mortgage payments comfortably, but can also be documented by a paper trail. Most conventional lenders today want the buyers of the debt per month – including their mortgage payments estimated -. Be not more than 36 percent of their monthly income

Susan Coveny, broker / owner of RE / MAX Prestige in the Chicago suburb of Long Grove, said today that said that buyers should be able to document their past all significant financial transactions. For example, buyers who have received a payment of $ 2,000 in their checking accounts must be able to produce documents showing that the payment occurs is an annual bonus or gift from their parents.

“Now we must prepare our clients to have all their financial documents in order,” Coveny said. “Customers need to make sure everything is in perfect order. Funder buyers today want to be sure that they live within their means. They want to make sure they are not going too far by taking a monthly mortgage payment.”

It ‘also important for buyers to have cash reserves, Coveny said.

“Lenders want to ensure that if buyers lose their jobs, they will be able to pay their mortgage for several months in the search for a new job,” he said.

Vicki Geiger, broker / owner of RE / MAX Top Properties Morris, on the basis of many relationships that form with the agents of mortgages during his long career as real estate to help customers navigate the new realities in the mortgage. When customers have questions about the mortgage process, Geiger recommends a loan officer with whom he formed a relationship.

In this way, Geiger knows that its customers receive the best possible advice when it comes to these documents, credit scores and debt relative to income they need to qualify for a mortgage.

‘resources is one of the greatest benefits to Realtors can provide to customers’, says Geiger. “I know that many lenders excellent If my clients ask me for legal issues. I refer to a real estate attorney if you have questions ready, they refer to a qualified loan officer ..”

Especially

, RE / MAX professionals now recommend buyers to be patient during the loan process. Mortgages are not closed in two weeks. The application process takes time.

Buyers should not be insulted when

their lenders to ask for additional controls. Just ask Lynn Fairfield, Associate Broker RE / MAX Suburban in Libertyville.

recently worked with buyers who were married in the middle of applying for a mortgage. These buyers have received a large sum of money for their wedding, and promptly deposited into your bank account.

their lender wanted to prove that the money came from the marriage. He requested a copy of invitation wedding couple.

“I had never heard anything like this before,” said Fairfield. “But the way it is today. Borrowers must be prepared to control everything.”

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