What In the World Is Going On In the World?
October 13, 2008 · Print This Article
The economic situation is getting worse day by day… or is it? In this jumbled mess, where do we turn for good, honest information? The reality is the media dramatizes the information they disperse to make for a good story. Drama and trauma sells.I am a home owner, a working woman, an investor, a consumer, and a future retiree who, just like you, needs good information in order to make sound decisions about my finances. Luckily, as a realtor, I have access to factual information and knowledgeable contacts who let me know what is really going on – no over exaggerating, no sugar coating, just the good honest truth.
As your real estate expert, I pass this information along to my clients. Every week for the next month or so, my weekly e-mail forum, Brenda’s HouseBlend will be dedicated to a question that I have gotten from one of my clients. The topic of the week may be mortgages, credit scores, banking, even ways to save money on home maintenance – just something someone was concerned about, and I wanted to pass the information along to others. If you’d like to receive messages like the one below, post a comment to let us know!
Are Lenders “Out” of Loans?
I have gotten several calls and e-mails recently from many of you who are worried about what is going on with the lending industry. If you listen to the news you will hear phrases like, “…when loans are available again.” or “Now that you can’t get a loan…” This is just plain untrue. I have been writing contracts through this financial crisis and getting loans for my clients without a problem.
The truth about loans:
- Loans are available, but lenders are being more discriminating
- Interest rates are very good and hovering around 6% or lower in some cases
- Loans are being driven by good credit scores
Who has challenges getting a loan?
- Poor credit, low credit scores
- No money to put down
- More than four homes (investment funding is being limited to four homes)
- Self-employed individuals that have a hard time proving income
Down Payment Requirements:
- Less than $417,000 – 5% down (the days of the 100% loans are gone)
- $417,000 - $650,000 – 10% down
- $650,000 and above – 20% down
- Investors (more than one home) – 20% down
In fact, if you have been a renter, now is a great time to buy. We are undoubtedly in a full-fledged buyers market so houses are priced to move. Interest rates are low. It all depends on your particular situation and needs. We work with some great lenders who can answer any questions you may have about the current market as well as the options for your circumstances.
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