To Log in to Property Watch or Sign Up for a New Account  click here
The Colburn Team . . . Your Realtors for Life!


 

1. There is no money available to lend
Although lending guidelines have tightened, there is no shortage of available funds for home loans.
2. I can’t qualify with the tightening of lending guidelines
We’ve gone back to a more common sense approach to underwriting. The basic FHA and Fannie Mae underwriting guidelines are the same as they were 5 -10 years ago. Borrowers with sufficient income and good credit can still take advantage of the low rates.
3. My credit score is not high enough
Although credit qualifications have become more stringent, loans are readily available for borrowers with credit scores of 620 or higher.
4. The value of my home has dramatically decreased
Not all markets have had large decreases in home values. This has been more of a regional phenomenon effecting primarily Florida, Michigan, California, and Nevada. The St. Louis metro area, although not free from some depreciation in certain areas, has not been impacted dramatically and values continue to hold steady.
5. I should avoid an FHA loan
Now that “combination loans” have gone away and mortgage insurance guidelines have tightened, FHA offers a great opportunity for today’s borrower (refinancing as well as purchasing). FHA and conventional appraisals are comparable and FHA underwriting has remained constant while conventional guidelines have tightened.
6. PMI is a bad thing
Similar to the fear of FHA loans is the borrower’s fear of Private Mortgage Insurance (PMI). In the past, borrowers tried to avoid PMI using combination loans. Combo loans are virtually extinct now, but mortgage insurance allows borrowers to buy a home with as little as 3% down (compared to 3.5% for FHA). PMI is now tax deductible and can be financed.
7. The market hasn’t reached the bottom yet
No one really knows where the bottom is, but because of the sub prime meltdown and the credit crisis, there are tremendous bargains and, mortgage rates are very attractive. Contact me for more information about our very competitive rates.
8. I need 20% down in order to buy a home
FHA and PMI allow borrowers to finance as much as 103% of the purchase price. Opportunities abound for the qualified borrower.
9. All banks are struggling
Recent news headlines have documented the struggles of numerous national and local banks. Although these headlines are dramatic, they represent only a small number of lending institutions. Banks and credit unions that were responsible in their lending, and are well capitalized, are not only in good shape but are set to prosper.

10. Interest rates have risen dramatically
As stated earlier, the weakening economy will continue to keep rates low, possibly pushing rates to record lows.

Information provided by: Mark Widdicombe, AVP, Loan Officer, Heartland Bank,
314.512.8915 (office), widdicombe@heartland-bank.com
Prudential Select Properties | The Colburn Team, St. Charles County Office | 6149 Mid Rivers Mall Dr, St. Charles, MO 63304 | 636-720-1100 | Contact Me by E-mail