This week I received some very valuable feedback from a realtor that said she got the feeling from reading some of my previous commentaries that loans are impossible to obtain, and it might discourage buyers from buying right now. (Thank you so much, you know who you are!). I welcome feedback always, so please don't be shy.
By nature, I am one of those 'people' that always finds the silver lining- positive outlook, and neutral ground. No wonder- I'm a middle child. So believe me, my intention has never been to be down on the home buying market. HOWEVER, I refuse to sugar coat the facts. And this could be mis-interpreted by some as negative. My goal is to acknowledge REALITY, and find a positive outcome, so we can get through these difficult times. I try to accomplish this by giving you, the realtors, information that is truly happening - Letting you into the world that lenders live in, so that possibly it can enhance our working relationship to continue to accomplish the dream of homeownership for our clients.
I've said this before, and I will state it again. THERE IS LOTS OF MONEY OUT THERE TO BORROW.......if.......you have (a) good/excellent credit, (b) can prove your income, and (c) have money for a down payment and reserves, and (d) if you give us time to work through any unique situations. Now that doesn't sound so hard, does it? Well, it still is challenging for many people, after a 5-6 year run of 100% loans, low documentation, and subprime credit programs. We have short memories. Some borrowers are having a hard time facing the reality of current times. Lending has gone back to the way it was when I entered the business in 1995, with a 'twist' of some extremes, but for the most part, conservative decision making. Now there are some unfair practices, I must admit (like the credit scoring system- please don't get me started). However, I'm just the messenger.
There are some borrowers that fall into gray areas (example: self employed), but we do try to work with them all we can. You may have to file on time taxes or even early, if you need 09 income to qualify. We may want an audited profit and loss statement. Every situation is unique. One borrower made a really great comment to me once. He was a business owner, and said that he found it hard to believe lenders cannot realize that the stability of a business owner is more solid that a W-2 employee. The business owner will do whatever it takes to save his business, and earn his living. Very good point, Mr. Borrower. But unfortunately, the purse strings (lenders) don't see it that way.
So as is my nature, I would like to leave you with a thought of something positive amidst this era of change and uncertainty: If it makes sense for you to buy now, do it. Get qualified early, to avoid any pitfalls. Be sure your lender (like Patriot Bank Mortgage) has several investors they work with, so that if you have a unique situation, there is a backup plan (hint: B of A, Wells, Citi, and Chase ALL have different guidelines for self employed borrowers). And if you cannot buy now for some reason (ex: don't qualify) - buckle down, save, and get your finances in order. Your day will come. But you won't know until you TRY. We will help you make a plan, and set goals for that home to be yours.
Enjoy the weekend!
No comments:
Post a Comment