What Has Changed With Getting a Mortgage?
In the past year, there have been numerous changes to the mortgage industry. Some lenders have closed their doors or merged, while others are scaling back their services.
If you are thinking about buying a home in the future, it is essential to understand what these changes mean for you and your mortgage. Doing so can help avoid common pitfalls and get the best possible rate on your loan.
1. Loan Rates
Since the housing market collapse, mortgage rates have gone up. Interest rates are determined by market fluctuations that take place daily, so shop around to get the best mortgage rate by comparing quotes from lenders.
2. New Technology
There are now a plethora of mortgage lending technologies that make the home buying process simpler and smoother. Some examples include online loans, telesales services and mobile apps. 2. Modern MethodologiesWith today’s ever-evolving technologies at our disposal, finding an appropriate loan program doesn’t need to be a laborious task anymore!
3. Hard Money Lenders
In the mortgage sector, there is an emerging niche that provides fast and affordable financing to home owners who need short-term assistance for renovations or fixing up properties to resell. Hard money lenders provide this short-term assistance and oftentimes don’t require extensive credit histories or financial documentation.
4. Mortgage Companies Have Becoming More Stringent with Borrowers
In the mortgage industry, lenders have become much stricter with those who owe other debt. If your total debt exceeds your income, some lenders may not even approve your application.
5. Changes in Employment
If your employment status changes, this could impact your eligibility for a mortgage loan. For instance, if the position shifts from salary-based to commission-based work, lenders may raise an issue and deny your application.
6. Transitioning Your Career
If your job moves you from one region to another, it could affect your eligibility for a mortgage. In some cases, lenders will require documentation proving your transition from your old employer to the new one.
7. Altering Your Income
If your income has changed, it could impact whether or not you qualify for a mortgage. For instance, if the lender requires 24 months of pay stubs and other documentation, they may ask that you provide these details.
8. What Happens if My Lender Goes Out of Business?
If you’re considering getting a mortgage, the process can be complex. That’s why it’s essential to find a lender you trust and spend the time to learn about your options before signing on the dotted line. With these steps in place, the process should go more smoothly for everyone involved.
When purchasing or refinancing a home, it is essential to shop around for the best mortgage rates. That means comparing at least three lenders before closing on your loan.
Start by shopping around for your loan on the internet or at your local bank. These lenders typically have more competitive rates than other mortgage lenders, and you can compare them within minutes of comparison.