The Truth About Home Loans In This Market Revealed

During this economy you may be feeling that obtaining a new home loan in Raleigh is not within your reach. There are many myths about mortgage financing and here are some answers to help you with your home loan process.

Myth #1- Banks are not lending:  We are hearing it everywhere that banks are not lending but that is just not the truth. Banks are indeed lending money just not to those individuals or businesses that have no credit worthiness. If you are able to show a good credit record that includes no missed payments in the past 12 months and have a significant income to debt ratio, you should be able to obtain a mortgage rate without any issue.

Myth #2- Large down payments required:  100% financing is not as readily available as it was a few years ago, but the need for 20% down is not always the case either. There are many programs available to potential homeowners that require only as little as 3% down.

Myth #3- Solid two-year work history a must:  Many feel that without a consistent two-year work history they would not be able to qualify for a loan. You will need to explain any gaps in your employment, but as long as those gaps were due to education or qualified time off it will also fit the bill.

Myth #4- Only a high credit score will qualify me for a loan:  It is a myth that you need a credit score of 700 or above to obtain a home loan right now. Many lenders are now looking for at least a credit score of 640.

Myth #5- Mortgage insurance is too expensive for me to afford:  In the past few years, the cost of everyday items has rose and mortgage insurance on FHA loans has increased by more than 100%. The good news is that private mortgage companies are becoming more competitive and aggressive in finding ways for homeowners to obtain insurance at a lower cost.

Myth #6- I can only have four financed properties:  In many instances, it is true that you can only have four financed properties at a time. However, many lenders have done away with that limitation are now allowing for up to ten financed properties.

Lenders are looking to lend and homes are more affordable than ever. If you are interested in learning more, contact Rodney Geohagan.The Geo Team is here to help you with all of your real estate needs. Rodney Geohagan is a certified distressed property expert who has the experience to help you sell your home and is qualified to help you with all options before it is too late. There are many questions about how the short sale process works and whether a homeowner would be better off selling short or signing over their deed in lieu of foreclosure. Rodney has the answer and would love to sit down for a confidential review of your options