Don't Believe This Common Misconception About Lending Standards

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Recently, we've received a lot of mortgage questions from those of you who watch our blog. So, today we thought we would invite Phil of Movement Mortgage to answer some of them for you!

There is a lot of news out there about how lending guidelines have tightened, and many people now think it's very difficult to get funds. The banks are still giving money, but the requirements for verifying a person's qualifications are stricter than they've ever been. Because of these stricter guidelines, it's crucial to work with a real estate professional and a reputable lender. We've had luck getting loans for people with credit scores as low as 580! Even borrowers with credit scores in the low 500s can get a loan with minor adjustments. 

Getting a loan is all about planning ahead. It's not a matter of if you can buy a home, but when. There are ways to improve your credit score, and strategies for getting loans even if you don't have a great credit score. The most important thing you can do is get the process started sooner rather than later. This is especially true because interest rates are still artificially low, which can't last forever. Most experts expect rates to rise by the end of this year, so it's never too early to begin the borrowing process! Since rates can't go down, it's best to lock in a low rate now before they begin their steady rise.

If you have any questions about this topic, or if you need real estate assistance of any kind, give us a call or shoot us a quick email. We would love to help you in any way possible!