With the latest “Bear Stearns” collapse, many loan programs have been discontinued. Lending Guidelines are going “back to the basics”.
Gone are the days of lax lending rules….
Bye-bye no doc loans, 100% financing and 80/20 combo loans. Hello, full documentation, low debt ratio, 3% down, good credit only approvals.
In the last few days, PMI companies have adjusted their guidelines to minimize their loses (see article below). Many lenders are now finding that loans set to close may not be able to get PMI coverage (hence, not be able to close). Many buyers have a pre-approval that is longer valid.
If you are a buyer with a preapproval letter dated prior to March 17th, call your lender and have it updated ASAP.
If you need a lender, let me know and I’ll be happy to lead you in the right direction.
