Temecula Mortgage Broker Discusses The Facts Of Home Lending

Temecula Mortgage Broker Discusses the Facts of Home Lending

by

Bill Provost

You witness it almost every day in the financial news, articles talking about how banks aren’t loaning money. While this may be true in some cases, it absolutely does NOT mean home lending isn’t happening.

As a Temecula mortgage broker, I have seen banks on a strict lock down with lending their own money since 2008. With all the economic nervousness over the past several years, the absence of lending probably makes good economic sense. The initial thing a bank wants to know before they lend money is how they are going to get the payments. When reimbursement is shakey, 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 long dissertation on how each of these entities affect mortgage lending, just understand they are all government corporations that securitize, guarantee or insure mortgage lending provided by banks. In one way or another, these companies give banks the security they need. I have seen different numbers, but approximately 90% of all mortgages today have a stamp of approval from either Fannie, Freddie, FHA or VA.

These loans aren’t just for people with perfect credit, 20% down payments or high income brackets. FHA will finance up to 96.5% of a home purchase and there are other programs that allow for those with marginal credit. This is true for refinances also, and if you current loan is FHA, you won’t need an appraisal. Fannie, Freddie and VA all have different variations of similar programs.

What is the bottom line? What should you accept as true? The headlines we see are actually true about the banks. They aren’t doing much lending. BUT the headlines are also a little misleading. Mortgage loans are being made under surprisingly aggressive terms every month as long as the banks have a satisfactory guarantee of reimbursement.

If you have been buying into the headlines, and sitting on the side, it may be time to research and discover what possibilities are. You might be somewhat surprised. Take advantage of record low interest rates and lower home prices today. Don’t believe everything you read and make sure that regardless of whether or not you require a Temecula home loan or a loan in any other part of the country, you need to be working with an experienced home loan consultant.

Being an informed consumer is critical when seeking a

Temecula mortgage broker

or a

Temecula home loan

. Get yourself up to speed by contacting Senior Loan Officer, Bill Provost at 425-241-1922.

Article Source:

ArticleRich.com