With a resurgence in sales I asked the question "Why?".
Is this a result of the changes in 40 year mortgages and zero down purchases looming and people quickly using these while these options remain available?
Talking to a few mortgage associates the answer is "No". Scott at Regional Mortgage states that "It has been about the same for the 0 downs, but the use of the 40 year amortization has actually slowed for most of us." The move to strengthen the market and the number of people who "need" a longer amortization is not as great as one would speculate I guess.
I also asked the same questions from our friends at The Mortgage Centre. Cindy explained that "We have had this conversation quite a few times over the last couple of weeks. A lot of people seem to be expecting a rush of people to be buying now while they can still get into the 100% financing or 40 year Am. It doesn't seem to be the case that people are in a hurry."
I also took the opportunity to ask Scott, How much time do you need typically to get mortgage approvals? Provided the buyer has provided you with all the necessary documents and income verification.
"Assuming we are using the traditional lenders not private lenders, for applications that have 0- 19.9% (insured mortgages) those can be finished anywhere from 1 to 5 business days. For a 20% down payment and above those can sometimes take a little longer any where from 3 - 10 business days. Each bank varies with the speed of the process, some are very quick and some are a little slower."
20% or more down for uninsured mortgages?
"Appraisals are sometimes needed on mortgages that are not insured (20% down or more). Some banks now have their own internal appraisal system that can waive the need for a appraisal for a small fee.
If you have to use a private or alternate lender all of these lenders require a appraisal and usually take a little longer, 5-15 business days."
The financing market is changing and banks are changing their criteria. Be sure to speak openly and frankly to your mortgage professional and ask lots of questions. The more you exchange information at the prequalifying stage the better prepared you will be to find the right home.
Your Friend in Real Estate,