Useful Information ~ Helpful Mortgage Hints ' Market Analysis
Much has changed recently in terms of the available financing options in the marketplace. The days of mediocre credit and stated income or ‘no doc’ loans are gone. However financing is certainly available and will likely get easier as the financial markets recover from years of excessively easy financing.
Credit is key. If you are considering a purchase it is important to ensure your house is in order in this area. Other than avoiding late payments, the most impact you can have on your score is to lower the average balance to available credit for your accounts. Try to keep your average monthly balance on credit cards below 50% of the available limit. DO NOT close any accounts as length of credit also counts.
Gather your information. In order to get a quick response from a lender, they will need detailed information. Gather copies of your last two year’s tax returns, recent paystubs or commission checks, last two months bank statements from all accounts, and mortgage information for all properties that are financed.
Be Realistic. While interest rates are still excellent by historical standards, you will not get a rate of 5% in today’s market. It is more important to be in the proper loan that fits your particular needs than it is to have the absolute lowest rate.
Second home or investment property. Financing terms are generally easier on a second home than on an investment property purchased for rental income only. You can only claim one primary residence and one second home; the third and fourth properties will be considered investment.
Consider alternative financing. Depending on your situation, you may find that a traditional bank is unwilling to lend. Assuming the purchase still fits within your comfort zone financially, there are plenty of private money lenders that might be able to finance your purchase. While this will certainly be at a higher rate, it can be an excellent short term solution. Another consideration would be to seek seller financing, which many sellers are willing to do in today’s environment.
Recommended Lender Resources:
Steve Kirby, Private Mortgage Banker
American West Bank, Sandpoing
208-610-8171 skirby@awbank.net
Ron Thomas, Area Manager
National City Mortgage, Spokane
509-216-3333 email: ron.thomas@ncmc.com website: www.MySpokaneBanker.com
Gabriel Hern, Branch Manager
Golf Savings Bank, Coeur D’ alene
208-640-6318 email: ghern@golfsavingsbank.com website: www.MyGloan.com
