Buying a Home, Make Sure You Qualify For The Loan

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Buyers that  are either preapproved or locked into loans and want to take advantage of the rapidly declining interest rates. BE CAREFUL!  I just heard about a scenario where the buyer had a credit score in the low 600’s and wanted to unlock his loan and lock at the lower current market rate, because he is only putting 10% down and will have mortgage insurance on his loan, the minimum credit score requirement for loans with mortgage insurance has risen from 620 to 720. This borrower locked his loan in early November, when the guideline was 620. Before my colleague Joe Mingham of Private Mortgage Advisors,  unlocked and tried to re-lock the loan.  He would have had to follow the CURRENT guideline of a 720 credit score and he wouldn’t have been able to get mortgage insurance on his loan. “We have had 3 guideline changes in the last 3 weeks so I would encourage you to make sure that your buyers are in constant, current contact with their lenders or mortgage brokers about the status of their loan approvals.” Joe goes on to say.
The moral of the story is make sure you and your BANKER are staying on top of guidelines in this turbulent times.