Only the loan-ly...

The U.S. economy is in massive turmoil, stocks look like they’re in free fall, and most of my friends are putting their money under their mattresses. The news says the credit markets are frozen.

There can’t be any way to get a home loan now, right?

Well, not exactly. While lending standards have gotten tougher (long overdue, in my opinion), there are lenders out there making loans.

Earlier this week I asked Susan Weber Pomelia of Residential Pacific Mortgage for her take on the lending market. Here's the skinny:

1. Make sure you pre-qualify before you fall in love with a house.
Lenders are much more stringent about down payments, verifying income, and credit scores. While a very few lenders are willing to make 90% loans, most are requiring at least 20% cash down.

2. Be prepared to provide two years of tax returns, W-2’s and other financial documentation.
Lenders want to see a ratio of no more than 45% of income going to total debt (including credit cards, car loans, etc.). The days of stated income/no documentation loans are over.

3. Manage your credit carefully to keep your credit scores high.
This is a good idea any time.

If you have specific questions about financing or buying a home in the San Francisco Bay Area, please email me at Vision Real Estate.