It used to be in the not to distant past that lenders wrote loans regardless of the fundamentals that make a borrower a good risk. Before the mortgage crisis, which began in the summer of 2007, if a borrower had a pulse, a loan could be found for that individual.
In today's marketplace that has changed as several fundamental, financial qualities have to be satisfied in order for a borrower to receive the best rates in the marketplace.
The first is adequate income. What this means is that a potential borrower needs to earn a little over twice their total monthly debt. The monthly debt includes the mortgage payment, property taxes, homeowner's insurance, car payments, credit card monthly minimum payments, and other debt that is amortized on a monthly basis like a timeshare, boat, etc.
Furthermore, the borrower has to have been employed, without gaps, in the same line of work for a minimum of 2 years. Different jobs are allowed as long as they are all in the same line of work.
A borrower must also have a minimum of 2 times the mortgage payment, home owners insurance and property taxes (also known as PITI) put away in a liquid asset account. Having said that the more money a borrower has saved the stronger their position will be. IRA's and other retirement plans can be included in the asset calculation but only at 70% of the total asset value.
Credit scores must be over 680 points, but a borrower over 700 will have even a better chance at getting the best rates available.
If you have attained such a financial situation then you are well on your way to the best rates in the marketplace.
Regardless if you are seeking out the best Oregon Home Loans or California Home Loan Mortgage Rates, if you are are in a financial situation where you qualify for the best rates seek a professional mortgage loan officer. This also holds true for those of you who must settle for poor credit home loans.
My name is Allen Sayble and I have been a loan officer since 2001. I specialize in poor credit home loans for borrowers with less than stellar credit and income situations, but also work with refinances and purchases for borrowers in good standing. I am based out of Ashland, Oregon and can write Oregon Home Loans and offer you California Home Loan Mortgage Rates At this time in the mortgage business it is most important for each borrower to work with a professional loan officer. It's also best to work with a broker, like myself, who has access to all of the different lenders and not be restricted to one lending institution or bank. Please visit my website http://www.mortgageconsumer.com to learn valuable information about the loan business so that you can be well informed about the loan process and make the most educated decision with regards to your home loan. You can also contact me at 541-324-9623
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