May
26

Not Your Parents’ Mortgage

By

It seems like every time we turn around, the rules are changing on home mortgages.  Gone are the days when we could find an apartment we wanted, then find a mortgage to fit.  Now, you should talk to a mortgage banker before you even start looking to be sure you are looking in the right price range.  Where there were many different types of mortgages, now there are two basic types:  Fixed or Adjustable rate.  While there is still some choice among different types of each, there aren’t as many as before.

Plan on putting up at least 20% for a down payment for a conventional loan (more if you’re looking at coops).  You might be able to qualify for a government-backed loan or private mortgage insurance if you’re strapped for a down payment, but it will cost you more in the long run.

It’s entirely possible the applicant could qualify, but the building won’t.

Scrutiny is the name of the game when it comes to a mortgage these days; consistent, stable income, high credit score and enough assets to cover not only the down payment, but also closing costs and reserves.  Even the coop or condo building financials will be examined very closely.  It’s entirely possible the applicant could qualify, but the building won’t.

See the full story and the video interview on ny1.com

Comments are closed.