The average 30-year fixed-rate mortgage in the U.S. is at record-low 3.66%, this according to the latest Freddie Mac’s Primary Mortgage Market Survey released last June 28.
This is good news as the 30-year fixed-rate mortgage is the preferred choice of would be homebuyers.
This record-low mortgage rate, however, is not within the reach of a lot of homebuyers as lenders have tightened their lending standards in the past few years.
The New York Times reports that lenders nowadays examines the borrower’s credit score, income, employment history, liquid assets, down payment, property value, type of property (single-family home versus a multifamily), and how much money is left with the borrower after closing.
Mortgage brokers told the New York Times that qualifying for a loan today is a challenge as lenders require “documenting your income and every bit of information on your application, down to the last $200 your mother sent you for your birthday.”
Bob Walters, Quick Loans chief economist, told the New York Times, “What’s tougher today is the level of scrutiny and documentation and analysis and re-verification around assets, income, employment and appraisals.”
According to the New York Times, in order to secure the absolute lowest mortgage rate, generally, the following requisites must be present:
1. Credit score of 740 or better
2. Down payment of 25 percent or more
3. Preferably in a single-family house
There is, however, an exception to the 740 or better credit score.
Mark Maimon, director of sales at Universal Mortgage in Brooklyn told the New York Times, “Say you have a 700 score but you are only financing 50 percent of the home’s value. You might get the same rate as someone who has an 800 score doing 75 percent financing.”
Whether you are a first-time homebuyer, first-time home seller, empty nester, thinking about selling a home or buying a home, do contact the Guldi Real Estate Group. In Southern Maryland, the Guldi Group is the number one real estate team.