Prescott Arizona Area Foreclosure News

From Tom Henichek, a local loan officer at Mountain Mortgage

Thinking of buying a home in the Prescott, Arizona area?  Perhaps one of the foreclosed or REO homes? 

Now is the time with the incredible decline in home prices and historically low interest rates!  Are you prepared to move forward? 

Before you answer yes, have you consulted a lender? 

If you are one of the 30% or so who do, congratulations!  Many others rush out to seize the opportunity and forget a vital step. 

Why is it so important?  Well, ask any lender and they will tell you how radically different the loan process is compared to three years ago.  

Gone are all the non-qualifying programs along with stated income loans for self-employed borrowers.  Higher credit scores are required and additional monies for down payments particularly for second homes and investment properties.  With Fannie Mae and Freddie Mac virtually being the only source for mortgages, they have enacted risked based fees for anyone possessing a credit score below 720.  With advanced planning you may be able to avoid these fees by ensuring your credit score does not cause you to pay  addtional monies. 

So don’t be insulted if your Realtor asks that you talk with a lender before being shown properties.  After all, nothing is as embarassing as finding that special home and, as your Realtor waits to prepare a contract, you are told that you do not qualify.  On the bright side, with these low rates, you may qualify for more than you thought.  Happy house hunting! 

For more information about the current financing market or to get pre-approved, call
Tom 928-775-9330 or email him at tomhenichek@cableone.net.

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