Secure your financing and why it’s so important during these times

What I am seeing during this unusual times and wanted to share with you today is to stay in touch with your lender if you are a buyer in this market.  The credit markets are shifting daily so it is important to reach out and speak to them.

Why you ask?

Many lenders are tightening up their terms and conditions. Minimum credit scores and required cash reserves have risen to new levels, making it difficult for many buyers to qualify. Some Banks are issuing fewer loans in order to conserve cash to offset the imminent delinquencies.  You as the buyer may believe you may have secured financing when, in reality, you may have only been conditionally approved for a loan.  This also could mean that if you are holding on to a pre approval that was approved with a very low credit score before COVID-19 this letter may not be valid anymore because of the changes.

It is also important to keep in touch with your lender because if you are in an imminent need to purchase a home having an established relationship with your lender will make it easier to receive an updated pre approval when you are ready to make an offer.

Another mention today is to help explain what a “mortgage commitment letter” is.  This letter is a more detailed document than a pre-approval.  This letter represents a firm commitment from your lender.  In the end, as long as you as a buyer can qualify for whatever financing you are seeking to acquire, there shouldn’t be any issue with achieving a successful close.

Lastly, if you have the funds, all-cash offers are even more desirable to sellers during this time, as they allow buyers to close on the home more quickly than an offer contingent on financing.

Remember we are all in this together so let’s all do what’s best to stay safe and healthy in these trying times.

I am always available to help if you are need of assistance in finding  your next home.