Yes, you can still get a new mortgage loan in these uncertain times. We spoke with Chase Hanks from Movement Mortgage to get her tips for home loans now. Even though many people are out of work temporarily, many are still in the market for a new home. We spoke with her recently about forbearance, so you may want to revisit that information. We aim to set you up for success in whatever stage of the process you’re in!
Revisiting Forbearance
There are a few things to mention and revisit since the last time we talked to Chase about forbearance. As always, check in with your specific lender, since each servicer is different. We still don’t have any official word on deferment plans from the federal government. We do know that 10 million Americans applied for loan forbearance. Were all those people really in such a place of hardship that they needed to do so? There’s no data to tell us that, since there was no requirement, but it may be that many simply rushed into the process in a panic when they lost their job or were furloughed.
A couple of important notes: Make sure you understand forbearance fully and really need it if you apply. Currently, if you enter into a forbearance agreement, you cannot qualify for a mortgage until you show 12 months of on-time payments for that agreement. So, forbearance is not a quick fix or a way to just put off payments – it’s a big change to your loan situation.
Unfortunately, many people may have rushed this process, perhaps thinking they were getting a deferment. Loan payment relief is appealing, but you should examine the terms to avoid making the same mistake. The original messaging was not as specific as it should have been, so many are seeing the consequences of that decision.
Expert Tips for Home Loans
At Movement Mortgage, Chase and her team are trying to focus on the positive to improve the market for everyone. Lenders have tightened requirements, which seems unfortunate, but it’s important to protect the industry as a whole.
There are still loan options available. Lenders have varying levels of liquidity depending on their portfolio, so reach out to more than one. FHA, VA, and conventional loans are still available. USDA still operates their 100% financing. Lending is highly customized and can’t be painted with a broad stroke, so you should shop around if your current lender doesn’t have a loan for you.
In Asheville, this may mean locals can afford homes again! Since the bids aren’t as competitive, people who have been looking for over a year can now use the growing buyers’ market to their advantage. Less folks are buying from out of town or as investment properties, so that opens up some interesting opportunities.
Loan Requirements
If you’re looking for a loan right now, be prepared and be honest. Those who are laid off or furloughed will need to return to that position before lenders can use that income to qualify for a loan. If you have variable income, your lender will average it with the time you didn’t have income or had less. Save time and be upfront about your situation – lenders will verify your income with your employer when you apply and at closing. Your loan originator will advise you as to the best practice in this situation. Align yourself with people who really know the industry inside and out.
Although she’s enjoying higher productivity levels while working from home in her sweats, Chase misses working in person with her team at Movement Mortgage and going to closings with clients. She loves to interact with people, share her tips for home loans, and see their success firsthand, but is working through this tough time like the rest of us.
Contact Chase for more information! Find her on Facebook, Instagram, or email [email protected].
