The Mortgage Environment

On my show yesterday, I interviewed Alice White Hinckley. I have known Alice for over 25 years. She frequently comes on my show to talk about mortgages. She describes the environment right now as very tough. We were really focusing on consumers that are in a position that need to refinance. So, I wanted to go through a few points that she made.

First, if you are having trouble with your mortgage, be proactive. The worst step you can take is to either ignore it or bury your head in the sand. It is best to call the bank and talk over your options. Keep in mind, the bank doesn’t want your mortgage back anymore than you want to face foreclosure.

Second, if you are in a situation where your rate on your mortgage is about to change within the next 6 months, go ahead and start looking at your options now. This is not a situation where a lot of options exist right now. If you are going to face a surprise, you need to be prepared for it. If you need to work on your credit score, you would then have 6 months to do something about it.

Mortgages have drastically changed. Everything is very black and white now. If you don’t meet certain criteria, then you don’t get a loan. As close as a few months back, mortgage companies would consider all types of information when writing a home loan. Now that information is limited to a few important pieces.

If you have any questions about your loan, I would greatly encourage you to e-mail Alice White at alwhite@firsthorizon.com.