Look at it almost every day in the financial news, articles talking about how banks aren’t loaning cost. While this may be true in some cases, it absolutely does NOT mean mortgage lending isn’t happening.
As a Temecula mortgage broker, I have witnessed lenders on a stringent lock down with lending their own funds since 2008. With all the economic anxiety over weight loss several years, the void of lending probably makes sound economic perfect sense. The first thing a bank wants recognize before they impart money is the direction they are going to get paid back. When repayment is questionable, banks refuse to lend.
This is when Fannie Mae, Freddie Mac, FHA and VA come to the rescue. There is no sense in going through a chronic Dissrtation Statistical Analysis Service on how each of these entities influence mortgage lending, just understand they are all government corporations that securitize, guarantee or insure mortgage loans provided by financial institutions. In one way or another, these entities give banks the security they need. I’ve seen different figures, but roughly 90% associated with mortgage loans today have a stamp of approval from either Fannie, Freddie, FHA or Va.
These mortgages aren’t just for using perfect credit, 20% down payments or high incomes. FHA will loan considerably 96.5% of a home purchase price and there are other programs that compensate for everyone with challenged lines of credit. This is true for refinances also, and if you existing loan is FHA, you won’t need an quote. Fannie, Freddie and VA all have different variations of similar programs.
What’s the bottom line? What should you believe? The headlines we read are actually true about the fiscal. They aren’t doing a large volume of lending. BUT the headlines can be also a little deceitful. Mortgage loans are being granted under surprisingly aggressive terms every day as long as the banks possess a satisfactory guarantee of repayment.
If you been recently buying into the headlines, and on the side, there isn’t any time to research and find out what possibilities are almost always. You might be somewhat surprised. Profit from record low mortgage levels and lower ideals today. Don’t believe everything you read and make sure that regardless of even though you need a Temecula home loan or a loan in any other region of the country, you should be working with a mortgage consultant.