For today’s message, I’m discussing a recap of a recent conversation with Brian Schutte of Ruoff Mortgage, my longtime lending partner and friend, to discuss the rapidly changing mortgage world and how borrowers can best position themselves on the market. In response to the uncertainty and fear surrounding COVID-19, mortgage companies tightened up their lending requirements as a precautionary measure—after all, risky lending precipitated the 2008 housing crash.
Now that we’re months into this pandemic and everyone has a chance to adjust (as best they can), rates and requirements have begun to ease back down. Brian is here to help us make sense of it all.
For full video, click the button below.
Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch it in its entirety or use these timestamps to browse specific points at your leisure:
1:28 - Obstacles facing borrowers in our current market; recent changes in lending requirements
5:52 - After the market’s precautionary knee-jerk reaction several weeks ago, things are finally settling back down
8:13 - How the mortgage world is having to account for forbearances
10:37 - The importance of homeowners having an accurate understanding of forbearances
11:57 - Lenders’ biggest fear right now: Job stability
15:44 - Recent changes to policies regarding refinances
17:39 - Why is there a discrepancy between the credit score you pull yourself via a free online service and the credit score a lender pulls for you?
23:21 - Simple tweaks can boost borrowers into the acceptable range for pre-approval
26:02 - Wrapping up today’s topic/the best way to contact Brian
If you have any questions about what was discussed in this message, or if you’re interested in buying or selling a home soon but aren’t sure how to proceed in these times, reach out to us. We’re always here to help, and we look forward to hearing from you.