Is it harder to get a mortgage now with all the forclosures or is it easier?

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I just applied for a mortgage pre-approval with a mortgage company, and the guy said he’d call me in a few minutes. It’s been an hour and a half since I called & he hasn’t called me. Does this mean I wasn’t approved? My
husband makes 50 thousand a year & has been in the same line of work for 12 years. We have no major debt, and we both have good credit. I only want a starter home for about 100,000 I figure we should be able to get a loan. With all the home forclosures & the bad economy lately, is it harder to get a mortgage? I live in Michigan which is one of the worst states for forclosures & bad economy.

  1. Reply
    Rick K
    May 14, 2011 at 2:16 am

    you should have no problem at all even thought they have tighten up requirements a bit with what you describe I wish I could help you but I cant in Michigan so good luck!

  2. Reply
    May 14, 2011 at 2:59 am

    His failure to give you a prompt response may well be an indication of his habitual responsiveness.

    Find a better loan officer, preferaably a mortgage banker.

  3. Reply
    May 14, 2011 at 3:06 am

    I don’t know if you got approved for your loan or not but let me tell you something about the real estate industry at the moment. It is falling and this is just the tip of the iceburg, it is going to be much harder to buy or sell a house in the next coming YEARS. Companies like Wells Fargo and Countrywide are closing the doors to their smaller branch offs which catered to people w/ not so great credit or smaller incomes. They are actually laying people off. It is MUCH harder to buy a house right now.

  4. Reply
    May 14, 2011 at 3:47 am

    Mortgage companies have tightened up because all of the foreclosures. Stated income and 100% loans are very hard to get. To get a slam dunk loan you will need 680+ credit, some money in the bank(3 months reserves), and good job history. Look if you are being disrepspected by a mortgage person you shouldn’t take it personally. Bottomline this person is only interested in money and not personal relationships.
    I would be willing to help you with your needs, I am fairly confident I can help find a loan and if I can’t I am going to call you back and tell you , not just run and hide. Plus if you are in the middle of Foreclsoure Central you should be able to pick up a sweet deal. I specialize in distressed properties.

    Let me know if i can help.

    Ben Mohr
    MC Lending Inc.

  5. Reply
    May 14, 2011 at 4:03 am

    If you have a good amount of money down, a permanent source of income, now should be a good time as the interest rates just went down this week. The fact that so many foreclosures are going on you should be able to pick one up for a better price than if you were going thru a realtor. Check the mortgage companies and banks for foreclosure list. Also sometimes there are tax sales and estate sales through your local courthouse or treasurers office. Make sure to check out several options to find the right deal for yourself. Also check into the neighborhoods and the appraised rate of other homes in the area before jumping in. You also want to think about resale, even if you are not planning on it right now.

  6. Reply
    May 14, 2011 at 4:22 am

    It will be easier to buy a house but harder to get a mortgage. House prices are falling, which is good for you; but the subprime lending market is gone. You ought to qualify for a conventional loan, which is a good thing. The general rule of thumb for conventional mortgage loans is that you can’t afford to buy a home that is more than 3x your annual income. On the other hand, they will want you to put money down, like 5 or 10 % and to be able to pay closing costs too. If I were borrowing for a mortgage, I’d start with my own bank, I’d be more likely to qualify there.

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