As fall fast approaches, we are seeing the real estate market undergoing many changes. Most particularly, lenders are going out of business and loan guidelines are changing.
Are you worried about your lender? If you already have a home and a mortgage, your payments will apply to your home. Even if your lender goes out of business publicly your loan will remain intact. You will still have to make payments. Your principal part of your payment will apply as well as the interest deduction.
To insure your payment records stay intact, keep good personal records. Request an amortization schedule and mark off your payments. Log your check number and date paid. Keep track of your interest deduction and principal and compare to the year end results. By doing this you are protecting yourself.
Now if you are trying to get a loan, the path has become much more difficult. Not only do you need a good credit score, you have to have a good history. NO LATE PAYMENTS within the last year. You may also need some down payment of 3-5% in order to get financing. The days of zero down are very limited. FHA and VA are coming back into style as they allow some variance on credit issues.
In summary, it is more important than ever to maintain good credit. If you have a mortgage, keep it current and on time. If you are to be a new buyer, see a lender and check your credit. Identify any issues and get them addressed. In the meantime, if you have any questions, please call me at 719-593-2963 or email me at email@example.com.