To say that the mortgage industry has changed is quite an understatement. Loan products that were available last year, even last month are gone. Down payment, credit score, employment, asset requirements, are not the same as they used to be (and they’re not getting more lenient).
The next change on the horizon comes October 1st when seller funded down payment assistance becomes a thing of the past and FHA down payment requirements go to 3.5%.
If you are a first time buyer OR if you bought your home in the past few years and are considering moving-up to a new home, there is no question the landscape has and continues to change.
It’s absolutely a must to consult with a mortgage professional BEFORE starting a home search. It’s not optional.
Home Sellers, this affects you too. Buyers are purely window shoppers unless and until they’ve been pre-approved and seriously consulted with a mortgage professional. That offer means nothing if it’s not supported by either: 1.proof of funds for cash buyers, 2. a valid pre-approval from a lender. When evaluating an offer on your home, the buyer’s ability to obtain financing is definitely a factor to consider!