Don’t Be Discouraged By the Mortgage Mess
Posted by Randy Kelley on August 19, 2007
From SanAntonioHomeQuest.com , Legacy Group-Keller Williams, San Antonio
If the mortgage industry bad news has you bewitched, bothered and bewildered, don’t be discouraged.
If you are an active duty military member and entitled to a guaranteed housing allowance, you should be much better off than the average buyer when the time comes to negotiate your mortgage loan (assuming you haven’t messed up your credit).
Here’s some advice from Pam O’Bryant, Partner, The O’Bryant Team, San Antonio. She specializes in mortgage loans for military affiliated families.
Sellers:If you’re planning on selling your home, be prepared for an even smaller pool of qualified buyers. While some experts predict a settling of this credit crisis over the coming year, tightened credit guidelines and diminishing mortgage products could knock out as many as 15%-30% of potential qualified buyers. Now is not the time to sit and wait for the best possible price. Have a serious talk with your Real Estate Agent. Having experienced buying/selling transactions in your area, he or she can help you price your home accordingly. He or she can also help ensure that your buyers are pre-approved and stay pre-approved throughout the entire transaction.
Buyers:Get pre-approved by your mortgage professional. While there are a lot of great deals out there, getting credit is becoming tougher and tougher, and it’s taking longer and longer to complete a transaction. Remember, what you qualify for today could change tomorrow in a volatile market. For those looking to refinance, keep this in mind. There is no time to delay! Communicate with your lender. Don’t do anything that could negatively affect your credit, and make sure you get all your documentation in on time.
Borrowers with less-than-perfect credit: Each week it seems lenders are shedding more and more mortgage products. Many lenders have stopped offering No-Doc loans and are reducing all forms of Stated-Income loans. While it might be challenging, borrowers with credit issues need to see a loan expert. Often they have credit repair resources and other strategies to help you reach your financial goals. Finally, don’t let the headlines get to you. While all looks bleak and scary now, there’s an important concept to embrace: all markets, while cyclical in nature, are self-correcting, be it credit, real estate, stocks, or bonds. For the last 6 or 7 years, real estate was booming and riding high. The correction we’re experiencing now – while it seems harsh and could get much worse – is, in a sense, “natural” and directly related to the extremely loose guidelines and perhaps overzealous lending and leveraging during the boom cycle.
Pam O’Bryant
Partner
The O’Bryant Team
Phone: (210) 293-2302
Fax: (210) 293-1440
pobryant@satxhomeloans.com
www.satxhomeloans.com
If you or someone you know would like to learn more about the credit crisis and how it could affect your financial goals, please send and E-mail or call Pam at (210)293-2302 to discuss your situation or set up an appointment. She will be happy to speak with you about it!
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