Buyers still can get loans to purchase a new home!

The media has blown the mortgage crisis out of proportion. While the institutional lenders have tightened the qualifying requirements, contrary to the belief of the general public, lenders are still loaning money to people looking to purchase a new home. In order to get a loan, a buyer must demonstrate employability, job stability and reliability.  Reliability includes holding a steady job for a least 2 years with the same company or employer and increasing or at least maintaining consistent income. You also must demonstrate that you have been a good credit risk for 2 years or more.  Credit doesn’t have to be perfect. Click here for your FREE credit report.

With the shift in the market, many buyers are going with FHA loans. FHA was created by congress in 1934 to help borrowers make loan qualification easier and to reduce the risk to lenders in issuing loans. FHA minimum down payment requirement will be increased from 3% to 3.5% as of January 1, 2009. If you don’t have the 3.5% down payment, buyers are allowed to ask the seller to contribute money for down payment and/or closing costs.

If you are thinking of purchasing a home but not sure if you can qualify for a loan, it is recommended that you contact a reputable lender. Pre-approvals are free of charge and are usually good for 6 months. If you are turned down for a loan, the loan officer will make recommendations on what you can do to improve the chances of qualifying for a loan.

Thinking of buying a home but not sure what to do? Contact me for a FREE home buyer consultation. Also, search the entire MLS for FREE at www.joestacy.com.