As the government keeps cranking out programs to try to keep the economy together, the mortgage financing woes—which did not completely pass over Colorado—and the increasing price of goods and services are impacting our Denver, Colorado home-loan industry.
The economic stimulus package helped some people while others never felt its waters seep into the parched earth of their day-to-day budgets. Even with greater options on the table, some are still fending off potential foreclosure actions against their Denver, Colorado homes.
Some options for relief have come with lower Denver CO mortgage interest rates, increased conforming loan limits for government-insured Fannie Mae and Freddie Mac mortgages, a foreclosure freeze, and through opportunities to refinance Colorado home loans.
However, the bottom line is that they are all dependent upon a consumer’s ability to qualify for a Denver home loan. And those qualification criteria have changed dramatically in the last couple of years. In the current Denver real-estate market, some lenders are turning away applicants in spite of good income and credit scores. Often, the buyers and applicants for refinancing that do not qualify under the stringent new requirements for financing assistance are the ones that really need assistance, the ones who need a break.
Overly cautious lenders may prevent the average consumers from qualifying by setting unattainable standards. They are requiring larger down payments, more income, fewer expenses, higher levels of equity, and assurance of liquidity.
The standards allow only the most qualified borrowers through the gates to finance larger homes or to refinance an existing home to keep it out of foreclosure. It takes a good relationship with a loan officer and a lot of homework to come up with win-win solutions. Especially in the case of the threat of foreclosure, homeowners have usually been under duress for months, both financially and emotionally. In fact, the situation is so difficult in Florida that Good Samaritan lawyers and others have organized to assist homeowners and to give them emotional and professional support.
To navigate the mortgage market during less-than-ideal conditions, some experts suggest that borrowers take deliberate steps to do all that they can to maximize their chances of securing financing. Along with fiscal understanding, the process can be time-intensive, complicated, and take a lot of fortitude. A reputable loan officer is prepared to bear the brunt of some of the energy, to deal with the complicated formulas, to calmly lead the applicant through the necessary hoops for his individual circumstances, and to find the right loan and appropriate lender.
The buyer, too, should be willing to roll up his sleeves, ask questions, do comparison shopping, and to work hard and persevere to achieve the goal of home ownership. All parties can adapt to the changing market conditions to achieve common goals.
For information about creative financing for your real estate purchase or refinancing, contact Brad Wyatt at (720) 407-6338 or e-mail client care@MAC5M.com.
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