| The financial industry has been in the throws of a | | | | The key to getting a mortgage in this market is to |
| dozy of a down market. The federal government has | | | | position yourself correctly. The first thing to consider is |
| acted to keep us out of another great depression by | | | | the motivation of the banks. They have been burned |
| pumping money into the market. The question for | | | | badly, so their number one focus is on limiting risk to a |
| many people is whether this money is now available to | | | | minimum. If you can fit within this profile, then you can |
| them in the form of mortgages? | | | | get a loan without too much trouble. So, how do you |
| How much money is in the financial markets? The | | | | do it? |
| answer is not entirely clear. Most people focus on the | | | | The key to getting a loan is to get your financial life into |
| $700 billion dollar bailout, but this is just a starting point. | | | | shape. That means you need to get your credit in |
| What many do not realize is the Federal Reserve | | | | order. If you have anything less than an "A" credit |
| Bank and other government agencies have already | | | | rating, you need to make an effort to fix the problem |
| been pumping money into the market to try to keep | | | | areas. An "A" rating means a FICO score of 751 or |
| things afloat. Even more is going to have to come in | | | | higher. |
| as the hedge funds begin to fail. Yes, there is another | | | | The second key to making your application attractive |
| potential collapse on our horizon. Regardless, we know | | | | is a healthy down payment. The minimum should be 10 |
| that as much as $5 trillion has been pumped into the | | | | percent, but 20 percent is a better figure. Keep in mind |
| market in the last 18 months. | | | | what a down payment is. It is a splitting of the risk. |
| Where did $5 trillion go? Well, it went to many areas, | | | | When you put $40,000 to $60,000 down on a home, |
| but much of it is actually in the banking system as we | | | | the bank knows you are not going to walk away from |
| speak. Yes, the banks have held back on lending | | | | that home unless things get really bad. This cuts down |
| because they are trying to make their bottom lines | | | | the amount of risk the bank faces, and makes you |
| look better, but they are lending money. The increased | | | | more attractive as a loan applicant. |
| pressure from the federal government to get money | | | | The financial world is undeniably a mess. It will recover. |
| into the housing market means that the banks are | | | | Part of that process is the issuing of loans. If you need |
| going to be issuing more and more loans whether they | | | | a mortgage, you can get one. Just make sure you |
| really want to or not. | | | | take the time to position yourself correctly. |