Expert guest contributor Kari Phillips of Southern Fidelity Mortgage was welcomed back on Harvey and Shelley’s radio show last Sunday to discuss loans with Harvey.
When buying a home, many people require some sort of loan. A few years ago, it wasn’t difficult to get a loan at all for a home. Not many lenders were looking at assets or anything like that, and that created a cause-and-effect chain that aided in the real estate bubble bursting here in southern Nevada. What goes into getting a loan now?
Kari explained that lenders make sure you qualify for certain loans before stamping an “Approved” stamp on the application. There are four criteria that lenders check in potential Las Vegas home buyers: your credit, your assets, your income, and your collateral. Your collateral, when applying for a home loan, is the home itself.
It may seem a bit overwhelming to those who are worried that they won’t qualify, but Kari offered a silver lining as well. Because of the improvement in the economy, those applying for loans can have a higher debt to income ratio. In the past, the ratio was at 40%. The percentage has since risen to 56%.
There are many different types of loans out there for prospective home buyers, but one loan that Kari focused on in particular was something known as a jumbo loan. In Clark County, that is any loan over $417,000. This number, however, is not uniform throughout the country but instead varies depending on an applicant’s county.
As to be expected, jumbo loans are harder to qualify for, as Kari explains. Usually, those applying for the loan must put 20% down. Other programs offer an option to only put 10%. However, it is crucial for those applying to have reserves in the bank.
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