The Roller Coaster Ride
August 22, 2007
The news media have described the week of August 13 to 17 as a roller coaster ride. They were referring to the dizzying ups and downs of the stock markets.
In a market economy such as the United States, it became obvious that problems in one sector (housing) could lead to problems in another sector (mortgage and banking). It was, and still is, hard to keep up with all the reports and rumors and editorials regarding the strength or weakness of the economy.
For a short time last week it was somewhat scary to listen to the commentators. I went to our loan reps and asked what they were experiencing. The market has tightened up, but there are still loan products out there. There are still investors willing to fund home loans. Conventional 95% and 90% loan to value is still possible financing. The investors are now requiring that the borrower have mortgage insurance. There are FHA and VA loans available.
Buyers who are interested in taking advantage of the large selection of properties that are on the market would be well advised to sit down with a lender and explore how best to finance a purchase. We are counseling buyers to get preapproved not just prequalified. Make certain that the lender you select has a proven record and can tell you where they might go to obtain funding.
Needless to say, I recommend the loan reps with whom our agents are acquainted. We have worked with them for over 15 years and have developed confidence in their ability to get the job done!
The news media have described the week of August 13 to 17 as a roller coaster ride. They were referring to the dizzying ups and downs of the stock markets.
In a market economy such as the United States, it became obvious that problems in one sector (housing) could lead to problems in another sector (mortgage and banking). It was, and still is, hard to keep up with all the reports and rumors and editorials regarding the strength or weakness of the economy.
For a short time last week it was somewhat scary to listen to the commentators. I went to our loan reps and asked what they were experiencing. The market has tightened up, but there are still loan products out there. There are still investors willing to fund home loans. Conventional 95% and 90% loan to value is still possible financing. The investors are now requiring that the borrower have mortgage insurance. There are FHA and VA loans available.
Buyers who are interested in taking advantage of the large selection of properties that are on the market would be well advised to sit down with a lender and explore how best to finance a purchase. We are counseling buyers to get preapproved not just prequalified. Make certain that the lender you select has a proven record and can tell you where they might go to obtain funding.
Needless to say, I recommend the loan reps with whom our agents are acquainted. We have worked with them for over 15 years and have developed confidence in their ability to get the job done!
posted by shirley harry at 1:31 PM
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