Financing - Seperating Fiction from Facts

As we turn on the television or open a newspaper, there is another story about another mortgage company about another failure. The media continues to feed on these stories like vultures to prey. It seems the people that control the news will not be happy until they have whipped their readers into a tizzy and frenzy. It is important you know the fact from fiction.

The North Atlanta housing market continues to be strong and robust. As I read the horror stories about the so called collapse of the housing and mortgage market, I wonder where this is happening, because it sure is not happening around here. I have closed many properties in the past few months and I want to share my recent experiences regarding the mortgage process.

Banks and mortgage companies continue to lend money today when purchasing a home and I have not had one issue when working with the various lenders. They continue to be professional and competitive.

If your credit score is above 650, you will continue to have the same assortment of financing options that have been available for the past 5 years, including 100 % financing, no money down, interest only, balloon options and hybrid products. Your options are virtually unlimited and because of your excellent credit history, lenders are aggressive and competitive.

If your credit score is 600 to 650, lenders will typically require a minimum 5% down payment but you will still have a large assortment of financing options and terms at competitive interest rates.

Credit scores under 600 will require a minimum down payment of 20% and the credit history will be closely examined. It is at this credit score where most of the trouble with mortgage lenders started. Banks have now gone back to their original standards with these credit scores and while it isn’t impossible to get financing, it will be more expensive for the borrower.

If you have any questions regarding the mortgage process or need guidance in any real estate transaction, feel free to visit www.NorthAtlantaHomes.org .