Lenders are ready to work with qualified buyers.
In the past 12 months the mortgage industry has traveled back in time. All of the mortgage products born during the early part of the decade are gone and we are back to the 30-year-fixed-rate mortgage. Many home buyers are under the misconception that the mortgage industry has hung up an “Out of Business” sign. In reality there is an abundance of mortgage money available at some of the best rates we have seen in 40 years.
A bank’s goal should be to help borrowers become homeowners for the long term. This means borrowers should have a minimum of a 10 percent down payment, spend no more than 45 percent of their monthly income on their monthly obligations and have a demonstrated record of excellent credit management.