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Orlando Mortgage approvals are getting tougher and tougher to come by…even for the previous “good” borrower.

Banks and the computerized approval systems they use to approve borrowers undergo a most important refit this month. On first look one might think this was a hasty reaction to the credit crunch, but there is more on deeper inspection. I also think that this is only the first barrage in an increasing reduction of Orlando mortgage lender principles across the board.

What Counts Now

A lot of factors “count” but some will count extra and now is the time to reset borrower outlook since they have been distorted over the last decade with a dreadfully lax standard. Knowing these “new” factors and educating what you can will make your approval if not a certainty…a high probability.

Towering on the list are credit and cash…big surprise, eh?

Back to Orlando Mortgage Basics

The most significant factor from the past now getting new life is the credit worth of the borrowers. Yep…this is a big one.

Fannie Mae has yet to say if there will be a “credit score cutoff”, but my guess is from now on without at least a 680-700 credit score, you can forget conventional loans. FHA loan programs may still be a possibility, but with the low loan limits many in the country (i.e. California, New York, Virginia, etc.) simply can use FHA programs until they increase their limits.

Get an Equifax 3-in-1 Credit Report Now! And check you have at least the minimum scores necessary before getting to far down the road on a refinance or purchase.

Credit Score Enhancement Tips

Your Orlando mortgage approval depends on a obtaining your best credit score, so let’s investigate ways to enhance your score.

Pay down (don’t pay off) all credit card balances to achieve no more than 50% of the accessible credit limit used. If you have a credit card with a $10,000 limit, never carry a balance greater than $5,000. If the balance is currently $5,500, then pay off at least $500 to get it down. If you had another card with tons of available credit, get the $500 from that card. Keep doing this “balance shifting” until all of your cards slide in under the 50% cap.