According to the Mortgage Bankers Association, mortgage applications are up 9% in a single week while refinances jump 11%
“Motivated by low mortgage rates, home buyer applicants are increasingly taking advantage of the buyer’s real estate market” Rita Driscoll, VP of Lending of The Driscoll Mortgage Team, said in a statement.
“The average interest rate for a 30-year fixed-rate mortgage is hovering around 3.18%” according to Driscoll. Realtors have adjusted to the national stay-at-home orders with e-signing of documents, virtual tours of homes and online notary services, while lenders have had to adjust, in real time, their practices and qualifications amid historically high unemployment rates.
Driscoll lays out the new criteria
“Lenders are tightening up their qualifying criteria. Credit scores, more favorable debt-to-income ratios and liquidity (in terms of down payment) will play a major role in lending decisions in the near future. We were getting first time home buyer mortgages closed in four weeks, from start to finish, while the world was locked down. That’s what we’re here for – to cut through the red tape and advocate for our mortgage clients.” Driscoll is describing how she is able to act as a hybrid between a broker and a bank. With her own underwriting department, there’s no reason a home buyer should have to jump through hoops to please one lender when a firm like Rita’s has over three hundred lenders in her network.
The across-the-board tightening of underwriting standards by lenders in response to the historically high unemployment rate, is partially responsible for the surprisingly stable interest rates we’re seeing today. As we navigate these uncertain times, we can expect banks to continue their cautious lending policies well into the fall and beyond.
For up to the minute information about mortgage lenders’ qualifying criteria, contact The Driscoll Mortgage Team, visit www.RitaDriscoll.com
The Driscoll Mortgage Team
Rita Driscoll, VP Lending
Email: [email protected]
Phone: (561) 310-0303
609 NE Francesca Lane
Boca Raton, FL 33487