September 16: You know that yesterday's stock market plunge means cheaper rates today on a 30 year fixed rate mortgage. You're right!
You decided last night that you're going to jump in right now and take advantage of the combination of low real estate prices and cheap money. Good move!
Be prepared for a few hurdles in this mortgage market...
- Higher Credit Hurdle. 740 is the new 720.
- Bigger Downpayment Hurdle. 25% is the new 20% down number.
- Higher Bar on Income Hurdle. Your bonus money doesn't count any more at some banks.
Some big banking names have disappeared because of lax lending standards. Those left standing have learned a lesson from the banks whose names litter the landscape. That lesson goes like this: "Avoid Risk."
What does that mean to you? Just this. Everything you tell your lender will have to be documented. And even with documentation, you'll find that you'll have to jump a little higher over more hurdles in order to get to the finish line.
Some good news? If you've done a good job managing your credit, you'll be rewarded with fewer fees. Good credit makes everything in America cheaper.
I'm Mike in Tucson, your preferred Tucson, Arizona mortgage lender.
Think of me as your local expert.
Call me. It cost's nothing to talk. Click the "view my profile" link for my number.
