Mount Pleasant

THEN: 2007-2008

An estimated 33% of loans which were originated by mortgage brokers failed to close, and 57% of their customers were unable to refinance. The major reasons for these canceled transactions were due to home buyers and homeowners having sub prime credit. Sub prime homeowners found they could no longer refinance under their original term since many of the sub prime programs are no longer being offered. Those few homeowners that met loan qualifications, more often then not found that they were still unable to refinance due to a high loan-to-value ratio.

In an effort to find loans for their clients, many brokers are submitting applications to multiple lenders simultaneously in the event that not all of their applications will be approved. Still, even with multiple applications, many homeowners and home buyers just can’t seem to meet underwriting guidelines for one reason or another. An estimated 33% of loans which were originated by mortgage brokers failed to close, and 57% of their customers were unable to refinance.

The major reasons for these canceled transactions were due to home buyers and homeowners having sub prime credit. Sub prime homeowners found they could no longer refinance under their original term since many of the sub prime programs are no longer being offered. Those few homeowners that met loan qualifications, more often then not found that they were still unable to refinance due to a high loan-to-value ratio.

NOW: 2009

So all this being said, what is the solution? What are the new guidelines. How does one go about getting a mortgage?

Step 1 – Improve your credit score.
* Obtain your credit report from freeannualcreditreport.com
* Dispute inaccuracies
* Negotiate settlement with attorney or collection agency- most will settle for half (1/2)if pressed – if they won’t listen to reason – wait a few weeks and try again.

(I know this requires patience and time- but don’t be intimidated or discouraged- approach the credit issue as if it were a new job- after all the amount saved by negotiating is future money in the bank and restoring your credit ,qualifying you for lower interest rates , can save you thousands and thousands over a life time.)

Part 2 – to be continued next week

People still need a place to live, but the question many have is how does the lower Mount Pleasant mortgage rate affect their purchasing power? The amount of the monthly mortgage payment in Mount Pleasant has become even more important as buyers become more aware of their budget and what they can afford. How much house can they afford according to their mortgage payment? Even with the number of foreclosures and housing “deals”, Mount Pleasant property is not free. The chart below gives one an idea of how reduced interest rates affect purchasing power.

Mortgage Rates