Bellingham WA Home Loan Rates and Tips

Buying a new home can be a little scary, but it should be fun.  What is not fun is getting part way into the process and finding out that you can’t get the loan you thought you could.  Your first line of defense against this happening is to make sure your loan officer has all your financial information ASAP.  Two things that can get your loan denied (even after a lender preapproval) are

• You aren’t approved by the PMI company.  You may be approved by the lender, but if you are putting less than 20% down on a conventional loan, you will be required to buy private mortgage insurance.  PMI companies have become very picky, because their’s is the first loss in the event you default.  If your credit score, debt ratio, amount of reserves or state of the market where you are buying make them a bit nervous, they may require a larger downpayment…or decline to provide the insurance.  In that case, your lender will not loan you the money.  
• The condo association doesn’t qualify.  Lenders have taken huge losses on condo loans, and guidelines that used to be ignored are being more strictly enforced.  Some of them include: 
  • No more than 10% of the units may be owned by a single entity.  This can create problems if you are buying into a small complex.
  • The amount of the condo’s bond may be too low.
  • Cash reserves may be too low – they must typically be at least 60% of the annual association fees.

Home loan rates as of Wednesday, February 24 are in the following table.  For more details, or a custom quote, contact SidneyStonecypher at People’s Bank, 360-676-4597 or sidney.stonecypher@peoplesbank-wa.com.  Remember that many variables come into play in determining the rate a lender will give a borrower.  If you are getting a rate quote from a lender who does not have all your information, that rate may not be real.  What with the low rates and the tax credits, it is a great time to buy a house!

 If you have other questions about financing, don’t hesitate to contact us and we will get you the answer.  If you are wondering, other people probably are as well.  For general financing and market information, check out our website.