Jeff Taylor, Co-Founder and Managing Director at Digital Risk, LLC was recently quoted in Washington Post’s latest article titled “Many lenders are loosening requirements for prospective home buyers” talking about loosening mortgage requirements.
Even though the Mortgage Bankers Association predicts mortgage rates could rise to 4.8 percent by the end of the year, anticipated higher mortgage rates could actually benefit some borrowers. Jeff says “The credit box is likely to expand a little bit because lenders will want to approve more loans when they can get a better yield from higher rates. We expect more purchase loans and fewer refinances this year, so lenders will be competing for borrowers.”
Highlighting the digital management of loans, Jeff says “Loan applications are increasingly handled digitally, which can make the loan process itself less painful, Lenders can use digital tools to upload materials and provide loan approvals more quickly.”
Later in the article, Jeff covers the utility of jumbo loans, stating “A conforming loan can save borrowers money compared to a jumbo loan, because jumbo loans typically require a down payment of at least 10 percent and as much as 25 percent in some cases.” Jumbo loans also can be harder to qualify for, requiring a higher credit score, a lower debt-to-income ratio and more cash reserves.
Read the full article in detail here