5 New Rules of Real Estate (Part 3)

by The Real Estate Faction on June 28, 2011

Mortgage Lenders: Just Not That into You

Most home buyers don’t have enough cash in their pocket to purchase a home without a mortgage. But, lenders are extremely risk-averse at the moment — so they don’t want to approve a mortgage application unless you have an extremely good FICO score (preferably 700 or higher, and at least 760 to get the best rates); you have plenty of cash in the bank (for your down payment, closing costs and a healthy cash reserve); you don’t have anything weird or amiss in your financial data. And it helps if you have another loan application approved from a competing institution. Which is to say: They only want you if you don’t really need them.

You’ll also need to make sure the property appraises at or above the contracted price and the neighborhood is steady (without too many foreclosures).

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