Real Estate News

Advice from the Mortgage Experts

If you are looking into FINANCING A HOME purchase – here is some good info from Chris and Debbie Thomas, the Mortgage Experts:

On September 24, Fannie Mae will change the way their underwriting software analyzes loan applications. Here are the changes.

The following factors will increase the risk of a loan application, meaning fewer loans will be approved:
• If a borrower only makes the minimum payments of their credit cards each month, the risk of the loan will be increased.
• If a borrower keeps the balances high on their credit cards, they will be considered a higher risk.
• If a borrower has frequently applied for additional credit within the past 12 months, they will be considered a higher risk borrower.
• If the only borrower on a loan is self-employed, or when two borrowers on a loan are self-employed, the loan will be considered a higher risk loan.

The following factors will decrease the risk of the loan application, meaning more loans will be approved:
• If a borrower pays off their credit card balances each month, they will be considered a lower risk borrower.
• Late payments on existing mortgages will no longer increase the risk of the loan.
• Borrowers with no history of mortgage payments will no longer increase the risk of the loan.
• Borrowers with lower down payments will no longer be considered higher risk borrowers.
Fannie Mae tells us that the total number of borrowers who are approved for loans will not change, but people who were approved in the past might not get approved now, and people were denied in the past might get approved now.
Our advice? Use us as your lender. 100% of the people we pre-approve have their loans close. We know the rules better than just about everyone else.

Have any questions about mortgages? Need a pre-approval? Contact The Mortgage Experts – http://www.mtgsupportservices.com

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