Hungry for a mortgage loan...no soup today

By
Real Estate Agent with Century 21 New Millennium DC-SP98366576

If you have the time, I would love to put a spin on the real estate market.  You see, there are lots of homes for sale. There are newly built homes in developments just waiting to become neighborhoods, there are resale homes including condos, townhomes, and single family homes.  Homes are for sale by builders, banks, and everyday homeowners.  Sales remain less than one would think, based on the attractive prices of the homes. Why is that?

At first glance, people point the finger at the tightened underwriting for mortgages.  The general assumption goes along the lines of something like, well, they lent money to anyone with a pulse and that idea blew up in their collective faces.  Loans went into default, lenders went belly up faster than a Chesapeake Bay fish fry, the economy was on the brink of disaster and Uncle Sam stepped in.  Programs to assist any and all lenders were created. Acronyms replaced everyday language and those at the top of the pyramid hemmed and hawed until such time as they could fill their own pockets and get out of town. A few did get caught, prosecuted and sent away (I learned on the Real Housewives of New Jersey, going away is the nice way to say someone has gone to jail). As for the rest, they tried to pick up the pieces and put some kind of mortgage lending system back together again.

Are you still with me?  

Yes, I want to read the rest of this scintiating story...

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Rainmaker
590,563
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

John, I respectfully dissagree... as a 25+yr veteran of the mortgage industry I can say it is easier to get a loan today than it was when I first started in the business.  Yes, we have seen the no doc loan dissapear, and the stated income loans are just about gone.  But if you have a job, and you can afford a payment, you CAN buy a home today... It is alos much more affordable to buy today than it has been in YEARS.  If you look back to 1989- it cost about $971/month to borrow $100,000.  at todays rates that same $971 will get you about $220,000 in a mortgage.

even more recently - 2006 (the peak of the Median priced home) to today- The median priced home with 20% down would cost about $1,200/month. Today that same home would cost about $684/month.

It is not hard to get a loan today.. and it is a GREAT time to buy.... You just need to verify everything.

Oct 18, 2012 07:59 AM #1
Rainmaker
263,036
Pat & Steve Pribisko
Keller Williams Greater Cleveland West - Westlake, OH

John, I read the whole story.  I believe it will be awhile before the interest rates rise again....

Oct 18, 2012 08:01 AM #2
Rainmaker
220,026
John MacArthur
Century 21 New Millennium - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes

Robert - in house or corresponding? How severe is your underwriting overlay? If you believe that it is easy to get a loan if you have income, credit and cash...so be it. There are thousands of would be buyers that have not had a sip of your Koolaid. 

Credit scores advertised "FHA as low as 680" fall by the wayside when the consumer attempts to get a loan.

It is only a GREAT time to buy if you have sufficient resources and adequate cash to close.

Pat & Steve ... as soon as major lenders have their books in better condition, they Feds will suddenly discover they no longer need to prop up the market and rates will rise.

Oct 18, 2012 09:04 AM #3
Rainmaker
590,563
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

John, Mortgage Banker.. Not a bank, not a Broker... We are the lender. yes we have overlays as do everyone on the planet.. but they are not that harsh.  and I hope you have a typo there. 680 is a creampuff of an FHA loan... 580 not so much.  I dont know anyone that will do a 580 even though FHA guidelines say you can.. But then again, there arent many 580s I would lend a dollar too let alone $100k... 

My personal experience... I can put you in More debt today than the day I started in the business

Oct 23, 2012 09:49 AM #4
Rainmaker
220,026
John MacArthur
Century 21 New Millennium - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes

Robert...thank you for the clarification. I made the typo...it should have read 580....I have no doubt that you can put someone in more debt today than the day you started in the business.

My job is to put someone in a home. Having people focus on how much debt they can put people in is one of the things that started the recent implosion of the industry.

Oct 23, 2012 10:55 AM #5
Rainmaker
590,563
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

John, My job is to get someone into a home with the financing that best fits their needs... and I always ask where they will be comfortable with a monthly payment, because that is so much more important than what the "qualify" for.

My point is that it is not hard to get a loan today.. That is a product of the media that keeps people from trying. for 25+ years that is how I have made a living, my only source of income.  If we were not lending I would not be in the industry anymore. 

Oct 24, 2012 09:38 AM #6
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Rainmaker
220,026

John MacArthur

Licensed Maryland/DC Realtor, Metro DC Homes
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