Finance Mortgage Loan Information

This short article is being written to give you information links you can access to obtain more detailed information on how to qualify for a mortgage loan and what to look for in purchasing a home. You are encouraged to go to the recommended links and videos to learn about the following items:

Purchasing A Home

The True Cost of a Loan ( video)

Documenation of Cash on hand (video)

Information on Stimulus Act (video)

Refinancing High Cost Areas

In order to provide more consumers the ability to refinance out of loans about to adjust to a higher rate, the conforming loan limits have been raised from $417,000 to as high as $729,750 in certain areas of the nation. This is a temporary solution and is scheduled to end in 2008. FHA, Fannie Mae, and Freddie Mac have announced putting new loan limits in place. They have also announced the rules for qualifying for these loans. Beginning April 1, 2008, Fannie Mae will accept higher limits on fixed rate mortgages. Beginning May 1, 2008 Fannie Mae will accept higher limits on 5/1 adjustable rate mortgages.

Jumbo-Conforming Mortgage Loan Guidelines

Guidelines to qualify for these loans have been released and are being reviewed by lenders. You can take a look at some of these changes at efanniemae.com. For more detailed information on changes please look in the links section of this page.

From Automated Underwriting to Manual Underwriting

It appears we are going back to the old fashioned rules of lending. I have obtained some archived educational videos on how a lender looked at qualifying a borrower for a mortgage loan. This was before the more lenient subprime standards. I suspect many of the old rules discussed in these videos will now be applied when attempting to qualify for a mortgage loan whether it is for a refinance or a purchase.