We can almost bet on it. The consistency of incoming calls coming into my office, from interested condo / home buyers asking “How hard is it these days to get a mortgage?”.
Truth be told, the only mortgages that are actually difficult to get are the old type sub prime loans. The old sub prime loans usually require amazing credit rating (especially these days, thanks Fannie and Freddie) as the lenders that do these types of loans are looking for minimal risk. But, for all practical purposes, do not be concerned with the old sub prime loans. Perfect credit ratings are not required, as long as you have more good credit history than bad, things should pretty easily fall into place.
The most important thing you can do besides reduce some debts is make sure the loan is set up in an appropriate way to help minimize the “big” things that may come up in anyones life (doctor bills, loss of job, bad economy, etc...) Loan underwriters do not have an exact formula they use to approve or deny mortgage applicants. They do however like hearing a plan of attack, so to speak, from you concerning costs, expenses that may come up in the future. Its basically convincing the loan officer that you can handle a “financial crisis” and still have a pretty sure fire way to make that monthly mortgage payment. This includes not having much debt, the more you have now the more you will have to pay later, on top of your new mortgage payment. Sometimes, if you go in to the lenders office prepared, the whole process can take only weeks if not less. If your not so prepared for the questions from the lender, or if you have large debts, you will no doubt have a much harder time getting a home or condo mortgage.
If one of your goals is to get a mortgage with the best rate and good terms (It should be) then you should without a doubt work on getting your credit score as high as possible before approaching any loan officers for a mortgage. Your debt reduction efforts will be taken into account and will save you money.
In all likeliness, this will be the most expensive purchase you ever made or will make in your life. So do some research on mortgages and make your purchase as easy and affordable as possible.
A little research and a some debt reduction will put you in a great place to get that mortgage!
-M Petrone
Condo refinancing expert
Why refinance

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