Living In Plainfield

Despite weaker loan demand, about 80% of the largest banks and 55% of smaller banks tightened their lending standards on prime single-family loans during the third quarter, according to a Federal Reserve Board survey of senior loan officers.   The trend to more restrictive underwriting standards translates into more loan preparation needed for future homeowners.

Preparation should include working with a professional mortgage broker to review, analyze and recommend how to improve credit scoring, sourcing of down payment of funds and other options needed for a loan approval.  Although many credit reports may contain some misinformation, removal of this same information may take weeks if not a few months to remove.  Delays in closing and even loan denial can be avoided by taking pre-empted steps now rather than later or during the loan process.

The actual loan process from beginning to end may only take a few weeks including contract, appraisal and underwriting.  Understanding the loan application and what current underwriting requirements changes that have taken place need to be taken into consideration.  It is recommended for first time homebuyers and homeowners with even minor past credit issues to being working toward correcting and preparing for the purchase of a new home 60 days before house hunting begins.

Down payment requirements have or will increase by 2009 and knowing how to source funds for the down payment and closing costs early will help to prevent problems down the road.  In a market where over supply of housing is an issue you will find home sellers willing to assist their buyers with some of these costs.

For more information about credit, how to source down payments and types of  available loan programs contact Dan Garcia (815) 886-9024 or go to www.HelpUsOwn.com.

Julie Ferenzi | Realtor®
Plainfield IL Homes
630-673-6233