What’s happening in the lending world? If you’ve been following the news lately, you may have heard that many lenders have increased minimum credit score requirements—some as high as 700. Some have also increased their down payment requirements and made 20% down mandatory. This is a direct reaction to the COVID-19 pandemic, which has also made many people elect to take on a mortgage forbearance.
How do these developments affect you as a homebuyer? That’s the question I’ll answer today.
Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch it in its entirety or use these timestamps to browse specific points at your leisure:
1:14—Why lenders have to be smarter about their lending decisions right now
1:46—Why entertaining a forbearance costs lenders a great deal of money
3:11—Why it’s critical for consumers to get qualified for financing far in advance
4:39—A word of advice for homebuyers
6:07—What if the economy declines even further?
6:32—Wrapping things up
As always, if you have questions about this or any real estate topic or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’m happy to help.