Getting Mortgage Loans Have Become More Difficult

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Getting Mortgage Loans Have Become More Difficult

Wednesday, June 23

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Three years has passed since the bursting of the housing bubble leaving all the parties concerned confused. The buyers and sellers are in a state of bewilderment as to what should be the best tactical line of action. The mortgage interest is low but soon it may start to increase. The price of houses continues to be low but already in some places it is crawling up.

In an uncertain market while house hunting in the South Bay real estate market a few tips could be of help.

There will be hard bidding for some of the houses. Although the sale figures have gone down in comparison to the boom period there are in the market some houses that will invite multiple offers. About half the houses in Santa Clara County that have been sold last May and 41% of those in San Mateo County were bought at a price that was more than what was the asking figure. The units most likely to attract competition are those whose prices were the lowest and those units that were in the best condition in some localities. Thus a condo with an asking price of $350,000 in Communications Hill of San Jose could well attract many offers. So might another unit in Los Altos with an asking price of $1.1 million. Short sales also attract buyers. In a short sale the permission of the lender has to be obtained by the seller since the house is sold for less than the loan amount due.

In these tough days it might be difficult to avail of mortgage loans – more complications and more time consuming. Since the last three years the number of documents required has sharply gone up. The lenders are checking what the prospective buyer’s state about tax records with their actual filings with the IRS. The lenders are also verifying from the employers about statements made regarding work history just prior to finalizing the deal as there are worries that meanwhile the buyer could have lost his job.

Experts are advising borrows to refrain from using credit cards at the last minute. There is the fear that a heavy amount withdrawn might go to the length of staining their credit history and place the loan-taking at risk. Thus it is better to get the loan pre-approved prior to making offers. It increases chances of running through a smooth process.

Original: Getting Mortgage Loans Have Become More Difficult