What to expect when you seek a mortgage in 2012

I get a little upset when I hear the media make statements like “its impossible to get a loan” or “lenders aren’t making loans.”  What they should say is “you can get a loan today if you’re qualified and willing to provide everything needed to qualify for the loan.

In 2012, full documentation is the rule.  The days of stated income, no doc, or sub-prime loans are long gone.  If you want a loan today, you will have to prove you have the credit history, the capacity to repay the loan, and the collateral is acceptable.  That means you provide bank statements to show you have the required down payment, w2 statements and pay stubs to prove income, and tax returns if you’re self employed or commissioned.  Furthermore, the property itself is examined closer to make sure its not been over valued.  This is all designed to ensure that the property doesn’t end up with the bank because the borrower cant make the payment, doesn’t have reserve funds, or the property has some security or safety defect.

Here in Meridian Idaho, I am making loans for people who need FHA loans, VA loans, or simple conventional loans with the required qualifications.  What is not happening is loans for people who just got out of bankruptcy, haven’t fixed their credit, people who cant prove their income or employment.

The loan process itself is a little more involved.  Expect to sign more disclosures, provide more documentation and explanation and finally it will take a little bit longer to process and fund the loan.  Right now, our turn around times are as follows:

FHA purchases, VA purchase, and conventional purchases: 30 days, maybe a little less.

FHA streamline refinances, VA Interest Rate Reduction Loans: about 45-60 days.

Conventional Refinances: 60 days or longer.

With interest rates as low as they are, many people are refinancing their loans or trying to buy a bargain home in Idaho.  Our company has taken the approach that our purchase loans go to the head of the line, as they are time sensitive.  The refinances go in afterwards as they are not as time sensitive.

If you’re buying a home in the Treasure Valley, Idaho you’ll certainly appreciate this approach.  Boise area Realtors, if you want to work with a purchase first company, then you should call me at 208-861-7579.  Don’t let your home buyers wait behind all the refinance loans while that contract date comes and goes.

Anyway, here’s a video where I go into more detail about what is needed for mortgage documentation in 2012.



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