The Perfect Wave
Mann Mortgage, LLC
It is an interesting time in the mortgage business. There have been many changes in our industry, but change can be good…it often leads to growth and innovation.
New regulations are constantly appearing in lending, as in other industries today, but when you look at the big picture you see that this is really a great time to buy.
If you’re in the process of purchasing a home, ask your Realtor to pull up some statistics for you on comparable homes sold four to five years ago. Notice how much you are saving in the purchase price alone. Then factor in the current mortgage rates that have held under 5 percent for more than a year. That is what we call in Hawaii, “The Perfect Wave.”
There has been a great deal of news in the media on how difficult it is to get a loan.
Lenders want full documentation and, in many programs, require credit scores that are not lower than 640…they are observing stricter debt to income ratios. Sounds to me like lenders want qualified borrowers.
What we do not want are borrowers who have a history of not making their payment or borrowers who are not going to be able to make the payments on the home they are planning to purchase. These kinds of borrowers were among the major causes of the escalation of home prices prior to 2008.
Will you be able to qualify for a loan under the new mortgage guidelines? Let me tell you this. I have been a loan officer for 22 years and in the business for more years than I am willing to put on paper. Yet I am always amazed today, as I was five years ago and even ten years ago by the number of well qualified borrowers who have never even tried to obtain a mortgage…or who are now applying and wishing they had done it sooner.
Buying your first home is a big step, but consider this. If you hold that property for a period of time you will have accumulated equity, which equates with a kind of forced savings. If you rent you are subject to terms set by your landlord who will, at some point and contingent on the lease, be able to increase your monthly rent payments… and, if the landlord decides to sell the property, you will have to move, possibly at an inconvenient time.
So, if you think you might be able to qualify for a mortgage, why not find out now. At Mann Mortgage, we have a variety of loan programs to fit the needs of a wide range of borrowers. Some of the attractive mortgage loan programs that are available and have been around for some time include: FHA, with down payments as low as 3.5 percent; USDA, with no down payment for borrowers who meet the criteria; VA, with 100 percent financing available; and FNMA which requires a 5 percent down payment. Each program allows first time and second time home buyers to obtain financing with small or no down payments.
Our job, as lenders, is to find the right program for you and structure it to meet your individual needs and financial goals.
Purchasing a home is exciting. The local staff at Mann Mortgage works extremely hard to make our customers’ home ownership dream come true. Please call me at 440-0916 and let’s start working together to turn that dream into reality.
Aloha, Pamela Barros