With the mortgage and refinance industry being so different many banks have decided to leave the industry all together. We are not sure if for some of these banks this is just a temporary move or if this is a long term plan to change direction. Many of these banks have left the mortgage and refinance industry just because to many people were defaulting on their loans. Many of these banks were not able to take the losses that many of these loans were producing. For the homeowners this has its ups and downs. The good part about this mortgage and refinance market is that only companies that are writing legit loans for people that can actually afford them are left in the market. So the borrowers will know that they are not getting scammed on their mortgage product.
The down side of this mortgage and refinance market is there are many homeowners or potential homeowners in the market that are not able to get the loans that they want. The mortgage and refinance requirements have gone up dramatically. Also the amount of products that these mortgage and refinance companies are offering has gone down significantly.
Now the borrowers that are looking to do mortgage and refinance have to have credit scores that are much higher, it used to be that the borrowers could practically have any credit score and still get approved for a loan, in today’s economy the borrower will have to have a minimum of a 620 credit score for any type of funding. Bad news for those looking to do a bad credit mortgage refinancing. Also the borrower used to be able to state their income, this was designed for people who had large write offs on their tax returns so that they did not show a lot of personal income but they brought in a lot of money. These loans are no longer existent in the mortgage and refinance market and now all lenders will require you to show past two years tax returns proving that your personal income is at the levels that you state it is.
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