Mortgage companies are hiding their wallets as the economy slows down. During the last two weeks, a number of major lenders have announced changes to their mortgage approval criteria. Here’s what Chetek home buyers should know!
1. Credit score requirements are rising. Lenders who typically sell their mortgages to the secondary market are seeking FICO scores around 680 or higher. See our prior blog posts for tips on improving your credit score!
2. Down payments need to be larger. While mortgage loans with only 3% down are technically still available, lenders aren’t in a hurry to approve them.
3. Debt-to-income ratios need to be lean and mean. If you have outstanding credit card debt, student loans or car payments, you may want to whittle those obligations down before applying for a mortgage.
4. Proof of income and verification of employment may be checked numerous times, right up to the date of closing. (Lenders fear issuing loans when unemployment is rising.)
5. Self-employed applicants, and those seeking “jumbo” mortgages, may need to prove stronger cash reserves.
For best results in a changing market, please contact Six Lakes Realty for a personal referral to local mortgage lenders. Barron County lenders have a vested interest in serving our communities! They will work hard to help you find the right mortgage for your needs.
When you are ready to buy a Chetek home, Six Lakes Realty offers the very best in real estate guidance! We are a locally-owned family business with over 40 years of experience. Our friendly, hometown service is just a call away!
Six Lakes Realty
Office: (715) 924-4806