Mortgage Rates May 2020
Mortgage rates for May 2020 are heading in the right direction. As lenders work through their loan application volume we’re seeing some improvements to fixed rate mortgages. With this post we’re going to cover three areas of industry changes for mortgage guidelines.
Cash Refinance Transactions:
Everyone knows mortgage rates are near all time lows. What most people don’t know is that lenders have tightened up their guidelines and its now more difficult to obtain a cash out refinance. In fact some mortgage lenders no longer even offer a cash out refinance under any circumstance.
The mortgage lenders that still offer cash out refinances are charging more for the availability of those types of mortgages.
If you are self-employed be prepared to provide some additional documentation if you are refinancing a current mortgage or purchasing a home. The jey change is mortgage lenders want to be sure their current source of income has not been significantly impacted by the pandemic. To show your income you may be asked to provide one to three months of bank statements and/or a letter from your CPA.
Be sure to talke with your loan officer about what are the current expectations with underwriting.
Low Credit Scores:
If you have a credit score below 680 it’s going to be very difficult for you to obtain a low rate mortgage (or even a mortgage). Mortgage lenders throughout the country and raising minimum score requirements due to the siginificant increase in those that are unemployed.
If you are looking for informative articles about mortgages, mortgage rates and/or the mortgage process then please be sure to visit my Scoop.it! page.. I cover various topics from cash out refinances, to the appraisal process, to how to improve your credit and more.