Mortgages... Be PREPARED

Money Report

There’s money out there to borrow. The sky is not falling. However, you need to be prepared.

Mortgages... Be PREPAREDToday you can’t read a newspaper or watch television without hearing about the sluggish real estate markets, subprime loans and fewer lenders actually lending money. Thankfully, I was a Boy Scout growing up back in Ohio, and I well remember the scout motto: “Be Prepared.” This applies to the residential lending industry now more than ever.

Here’s the great news. There’s money out there  to  borrow. The sky is not falling. However, you need to be prepared. What does this mean?

Be prepared to get pre-approved for your loan if you’re purchasing. Be prepared to provide documentation to prove your income and assets. Be prepared with your credit. Are all your payments up to date? Do you have high balances on credit cards that need to be paid down? Is your credit score high enough to qualify you for the level of financing you’re seeking?

Find a lender whose mortgage lending hasn’t been curtailed. You may want to avoid those who are wholly reliant on the unpredictable nature of the secondary financial markets. Look for those who remain optimistic about the mortgage lending industry and are confident in their stability.


  • Do they offer 100 percent financing with expanded eligibility?
  • Do they offer competitive rates and aggressive fixed rate jumbo financing options?
  • Do they offer personal assistance with credit challenges?
  • Do they continue to fund and close loans?

Be prepared to understand how your mortgage works, both at closing, and down the road if you choose an adjustable rate loan (ARM).

First FederalHere’s more great news. This continues to be a buyer’s market. Opportunities are plentiful. Be prepared to find a Realtor you trust and let them do what they do best... educate you on the market, understand your needs, narrow down your search, then put you in the best position to buy the home of your dreams.

There’s no doubt about it. Things have changed. But, with change comes opportunity, and opportunity is knocking right now. Be prepared when it comes your way.