Mortage Money Available; 67 Properties Sold; Real Estate Market Moving in Past 2 Weeks

Submitted by Mary Rosinski on Tue, 10/07/2008 - 21:43

Contrary to what many would believe, there is plenty of mortgage money available for the purchase and refinancing of property.

This availability of funds has been the reason why in the last 15 days, the toughest 15 days in the recent financial history of this country, 30 properties in Evanston have gone under contract and another 37 properties closed and new owners took title.

Local banks and mortgage lenders are telling us that for qualified buyers with down payment they have money to lend at good rates.

Thank goodness the days of the no-documention loans are gone. Those "no-doc" loans are at the base of the financial crisis rumbling through the world these days. Greed of the companies making these loans to people without verifying the income and ability to repay ran rampant.

On the other hand, there were many lenders who maintained standards of qualification, and have loans which are solid.

Conforming loans, those $417,000 and less, have rates around 6%. Non Conforming loans, also known as jumbo loans, $417,000 and more are ranging between 7% and 9%.

A good credit score of 720 or better will get a lower rate. verification of income is essential. Call your local lender or realtor for referrals to a reputable lender.

For information on rates and mortages news:

http://www.freddiemac.com/corporate/buyown/english/mortgages/what_is/ Freddie Mac

http://www.mortgagenewsdaily.com/ Interesting Mortage Industry Information

Forums:

jeffpsmith

Thu, 10/09/2008 - 21:46

Mary, my inquiries and investigations in both the residential and commercial markets show the same thing.

Credit is no question tighter, but that's been true for well over a year. However, houses and condos are still being sold, albeit at a slower pace, and buyers are still getting loans for them. Businesses still have lines of credit, tho some have been reduced. I've both been extended credit and have extended it myself. The threat of the economy "grinding to a halt" and the suggestion that businesses rely on credit to meet payroll was, in the main, inaccurate.

Things are going to be slower for a while, but the basics of the economy -- millions and millions of Americans getting up and putting in a days' work to provide goods and services for others -- will continue, regardless of what happens on Wall Street.

People still need housing, and growing families outgrow apartments and smaller places. Banks are getting money from the Fed and have to do something with it to make money, so ultimately it gets loaned out. Selling in a down market evens out, because as soon as you sell, you are a buyer or renter in that same market, and you can get more for your money with the proceeds. Those in a fix are those who need to sell, and who bought (or borrowed) high. Those are difficult stories, but thankfully, the vast majority of homeowners, and even sellers, are not in that predicament.