ICeniuye, phelps@century21 dickinson.com REAL ESTATE Q: After finally deciding to purchase a home we have run into much stricter qualification standards. Is this the norm or can we expect it to loosen up? Dick Phelps A: Specific lending questions should be directed to your lender. They have their finger on the pulse of the market. What I have been told by lenders is that lending institutions tightened their standards during the COVID-19 pandemic to avert risk. It is expected that the standards could ease a bit as the economy keeps improving and re-financings become a smaller share of the total mortgage lending. Still the most favorable rates will go to borrowers with stellar credit histories. These being credit scores of 720 and above along with large down payments. Loans on homes that are principle residences will continue to be more favorable than for a second-home or vacation home mortgages. In preparation for acquiring a home mortgage, work to keep a good credit score or improve the existing score. Contact your lender for things you can do to improve a score that may not be in the "good" range. Also be saving for the down payment; more saved, the better the rate. Another very important aspect is between now and acquiring the mortgage, do not do anything that will affect your loan-to-income ratio. By this I mean, no new purchases on credit or any other financial activity that affects the loan-to-income ratio. (Wait until the mortgage papers are signed before celebrating with a new vehicle purchase.) If you are thinking of marketing your home in the Spring, contact me now for things to do now in preparation for Spring. For Questions Contact: Dick Phelps 218-766-5263 e rphelps@century21dickinson.com DICKINSON REALTORS ICeniuye, phelps@century21 dickinson.com REAL ESTATE Q: After finally deciding to purchase a home we have run into much stricter qualification standards. Is this the norm or can we expect it to loosen up? Dick Phelps A: Specific lending questions should be directed to your lender. They have their finger on the pulse of the market. What I have been told by lenders is that lending institutions tightened their standards during the COVID-19 pandemic to avert risk. It is expected that the standards could ease a bit as the economy keeps improving and re-financings become a smaller share of the total mortgage lending. Still the most favorable rates will go to borrowers with stellar credit histories. These being credit scores of 720 and above along with large down payments. Loans on homes that are principle residences will continue to be more favorable than for a second-home or vacation home mortgages. In preparation for acquiring a home mortgage, work to keep a good credit score or improve the existing score. Contact your lender for things you can do to improve a score that may not be in the "good" range. Also be saving for the down payment; more saved, the better the rate. Another very important aspect is between now and acquiring the mortgage, do not do anything that will affect your loan-to-income ratio. By this I mean, no new purchases on credit or any other financial activity that affects the loan-to-income ratio. (Wait until the mortgage papers are signed before celebrating with a new vehicle purchase.) If you are thinking of marketing your home in the Spring, contact me now for things to do now in preparation for Spring. For Questions Contact: Dick Phelps 218-766-5263 e rphelps@century21dickinson.com DICKINSON REALTORS