In a time like this where COVID-19 is ever-present, many Detroit residents are focusing their energy on beating an unseen threat that continues to claim lives and incapacitate many. Beyond human lives, however, the virus has also changed industries in terms of how they work, thrive, and survive in a time like this where the economy is sinking.
As the pandemic continues to unravel and affect millions of lives across the country, there’s another crisis that people need to watch out for: The increasing difficulty of getting a mortgage.
How Difficult is Difficult?
Getting a mortgage today has become far more challenging than ever because of the high loan application volumes that lenders struggle to cope with daily.
To compensate, lenders have emphasized the need for higher credit scores because of the influx of aspiring loan applicants that the state’s financial firms have been dealing with. Yet, the problem with this development is that only 1.6 percent of the entire U.S population has a perfect credit score of 850, totaling out to roughly 10,760 Detroit residents.
Exploiting The Truth
If you classify as the 660,000 other residents that don’t have a perfect credit score, you may be wondering how to fulfill your home-owning dreams as mortgage lenders get even stricter. With the current situations, however, you don’t need a seemingly-impossible 850 credit score to get the home of your dreams.
Experts claim that you only really need a credit score of 760 to qualify for the best rates on different loans, and that includes mortgages. Alongside this, professionals in the mortgage lending field also back up the fact that you can still get a mortgage even on a fair or average score as long as you’re employed.
An Explanation on Sudden Leniency
Now, you might be thinking, what caused the new favorable developments in mortgage lending application experiences? Here’s your answer: the Coronavirus pandemic.
Ever since Congress passed its two trillion-dollar COVID-19 stimulus package, lenders have shifted their basis of evaluating credit scores in applications to presences of steady incomes. This is because the economic fallout has left many in need of jobs and requesting mortgage forbearance, a development that has created a silver lining of sustained loan closing rates.
Taking the pandemic’s effects into consideration, anyone who still has a steady income from employment and savings can seek viable options when applying for a mortgage. Although the monthly payments may be relatively higher than those given to borrowers with 720 credit scores and up, Detroit residents with much lower scores can still seek loans if they can show a steady income. When you enlist the services of a licensed mortgage originator—such as The Mortgage City—you still have high chances of getting your application approved even with a 620 score!
While the American dream of finally finding a home to settle down in may seem quite complicated because of how difficult it can be to seek a mortgage, the pandemic provides a window of opportunity. If you want to start owning a home amid a pandemic that has freed up the real estate market more than ever, now is the time to act immediately!
Are you looking for a home mortgage loan program in Detroit that’s accommodating enough to take on low credit score applicants so that you can own your dream home soon? Get in touch with us today to learn more about how we can help you apply for a mortgage loan, housing loan, or refinance on your mortgage! Call us now at (248) 930-8709.