Hello all: The mortgage market here has definitely tightened. Currently, there is as much as a 9 month inventory of houses for sale in most areas. Anything above a 6 month supply can be considered a buyer's market. A lot of my real estate agent friends are struggling right now. And I feel for them. Two years ago, almost any homebuyer could get a loan. Now, it's only the people with great credit and money in the bank that are guaranteed.
It's an interesting paradox here. The economy is still strong up here with several companies hiring and thousands moving to the state every year. However, housing was so strong here for years, I believe that a slowdown was bound to happen. So what's the message to our customers? Make sure you have your financial house in order if you plan on buying or refinancing your home. Know your credit score (you can check this free once/year through www.annualcreditreport.com) and have some money in the bank. The days of 100% financing are pretty much gone for now.
I believe the market will continue to tighten here and there may be more foreclosures on the horizon. The trend on foreclosures in this area is definitely up. I'm not sure that the market will improve until 2009 or beyond. It doesn't mean that it's all doom and gloom, though. My business is strong and I believe that the mortgage lenders who take care of their clients and present themselves as knowledgable professionals will do just fine. Have a great day and I'll talk to you soon!
Paul
Paul McFadden
Thanks, Jeanne. Amen to you as well!
Paul
Hi Leslie: I know the experienced realtors are scratching their heads a bit. I think it's important to not sit around and expect things to happen. Today I was having lunch with a group of networking friends and one of my sharp cohorts brought up the saying by a successful auto dealer in the area that they never participated in any downturn. It prompted the discussion about how important a good attitude toward your profession is. I'm sure you have it and know you'll weather the storm. In answer to your question about the lenders easing up a bit, I don't see it anytime soon (within the next 6 months at least). I know this doesn't help you but what you and I can both do is be a resource for our clients and provide them with as much information as possible so they're ready and prepared for the mortgage financing process. I hope this helps. Have a great day!
Paul