New Rules That Could Prevent Your Approval for a Low Rate Mortgage

For any clients applying for a mortgage after June 1, 2010, an updated credit report will be pulled after your loan is approved and prior to closing. This could result in a delay at closing, additional documentation, or a worst case scenario of reversing the decision based on the new credit report and score.

For clients who apply prior to June 1, and close prior to July 30th, the current rules apply, which state credit must be less than 60 days old at closing, which means nothing will change from the initial estimates, and once you are approved there is no additional information needed.

For those clients who prefer a "Hybrid Loan", fixed for a period of 5, 7, or 10 years, you must now qualify at the intial rate +2%. This means a customer who now qualifies at 3.75%, must qualify at 5.75% to be approved.

While not a large portion of loans being done are these 5, 7, and 10 year ARMS, it could result in higher rates across the board for clients.

Now is the time to apply. Get paid for getting a loan or for referring others. Just go to:

http://budurl.com/FastHomeLoans