Financing has become the biggest headache in today's market. Lender tightening on buyers' qualifying criteria and on appraisals continues to be an issue. And, the tightening isn't over yet. FHA is popular with low-cash-down buyers. The default rate on these 3-5 percent cash down payment loans is rising. FHA may change their guidelines this year.
Buyers can save themselves a lot of grief by making sure they're qualified for the financing they need before making an offer. Have your credit checked. This can keep you from qualifying for the best mortgage at the lowest interest rate.
It is not uncommon for buyers to be told, everything is okay with their loan and they will settle in a couple of days, only to find out in a couple of days that underwriting needs one more piece of information from them. An experienced mortgage broker, lender and loan officer who can anticipate what underwriting will require is very important.
An offer made contingent on the sale of the buyers' home is riskier than one that's not contingent. Before sellers accept a contingent-sale offer, they should make sure the buyers have a home that's priced right for the market. If the buyers' home doesn't sell, it could waste a lot of time for nothing.
Always expect the unexpected.
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