Reason First-Time Homebuyers May Hesitate to Buy: Industry Regulation

Information for first-time homebuyers who need a loan or mortgage in Virginia Beach, Norfolk and Chesapeake:

We all know about the housing market crashed in 2008-2009. It happened in part because lenders approved borrowers with little to no income or credit documentation. It was a recipe for disaster.

Today, the rules to obtain a loan are much tighter and, yes, it may all seem intimidating to your client. However, the new regulations are nothing more than a comprehensive look at a person’s financial history.

For example, qualified mortgages (QM) were created to protect the client and prevent another market crash. When lenders pre-approve/pre-qualify borrowers, they make sure clients can afford the mortgage. That means they have a history of paying debt/loans on time and consistently. They also have a stable income and employment.

So the next time you have a client who needs preapproval, make sure he brings these eight documents for a meeting with a loan officer. That makes the loan process much easier.

With a solid financial history and the proper documentation, a home loan is within reach.

Want to buy in VIrginia Beach, Norfolk or Chesapeake? Contact me!

Featured image: Ron Frazier (Flickr)

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