In the aftermath of the housing bubble, there was a common perception that mortgages were impossible to obtain, that banks didn’t want to make home loans. Based on a recent publication from Oregon Community Credit Union on the home mortgage environment, that perception appears to persist.
It’s worth remembering that one of the primary fallouts of the housing crisis was more about regulations placed on lenders than it was lenders’ willingness to loan money. Banks and other financial institutions really do want to make home loans, and getting a mortgage might not be as hard as you think. Regulations are more burdensome and the forms you need to fill out and sign might be a hassle, but qualified buyers really can obtain a mortgage.
Huge down payment not required for a Bend home loan
A down payment of 20 percent isn’t required. Buyers can take advantage of products that allow as little as 3 percent down.
Twenty percent is a threshold at which a homeowner might be required to obtain private mortgage insurance, so there is that advantage to putting that much as a down payment (as well as having lower monthly payments resulting from the larger down payment, of course).
The Oregon Community Credit Union article also notes that a long stint with your current employer isn’t necessary. Evidence of continuous employment is more important that your tenure with one employer.
Most of us carry some debt from month to month, whether it’s credit cards, an auto loan, a student loan and so on. That doesn’t mean you can’t also take on a home loan.
Generally, a mortgage can be approved if the borrower’s debt load – encompassing the new house payment and the minimum monthly payments on other debts – is 45 percent or less than the borrower’s income.
Perfect credit not necessary for Bend home loan
What with the volume of advertisements on TV about credit-monitoring services, it would be easy to assume that anyone considering buying a home would need to have nearly perfect credit. That’s not the case.
In addition to the credit scores, “Lenders consider additional factors when reviewing mortgage applications,” a Bank of America article says. “If they are satisfied with your overall financial situation, you may still qualify for a loan.”
As the Oregon Community Credit Union article points out, even if you have a short sale, a foreclosure or a bankruptcy on your record, you can obtain a mortgage — after a period of time.
That said, it’s a good idea to try to keep your credit as strong as possible, as a high credit score can help you get a Bend home loan with a lower interest rate.
Obtaining a home loan is among the more time-consuming parts of buying a house. If you are in the market for a home, I can refer you to trusted lenders. Or, if you’re considering selling, my experience and knowledge of the Bend home market will be of tremendous advantage to you. To learn more about how I can assist you in your real estate transaction, contact me at (541) 383-1426, or visit Bend Property Search to connect with me through my website.