Washington Mortgage Planner-straight up mortgage advice and commentary

Hello all:  Well, 2007 was a wild ride.  Who knew?  Starting with the failure of Merit Financial in Kirkland, WA. (my neck of the woods), and followed by 209 others according to www.ml-implode.com, I think we've maybe hit bottom.  There aren't too many more wholesale lenders who can bite the dust!

Now the correction can begin. A longtime acquaintance at a title company told me that he thought that a real estate recovery might start happening in the Fall. I don't think he's too far from the mark.  Although the Pacific Northwest hasn't been hit as hard as the rest of the country, things were much slower in 2007 for us as well. Even though it would be nice to think a recovery will begin at the start of 2008, that's probably too optimistic.

Obviously, the playing field has been changed.  In Washington State, it's estimated we went from a high of 18,000 loan originators to 8,000 in the New Year.  What's left are the true, dedicated professionals which bodes well for you, Mr/Mrs. consumer.  Expect better, more responsive service as we move forward.  We'll actually have to earn our money now!

If you're a potential buyer, the time couldn't be better.  If your credit is good (credit score above 680) and you have money in the bank, you'll find that there's lots to choose from at often reasonable pricing.  Plus, you can take advantage of a full year's tax writeoff on your interest, property taxes, and closing costs.  Be sure to check with your tax professional to see if investing in real estate makes sense for you.

So I expect most of 2008 to still be slow before we turn the corner.  But the opportunities are out there.  I was golfing at a tournament this Fall and one of the golfers asked me what I was up to these days.  I told him I was in the mortgage business and he commented "people are always buying and selling real estate".  So true!  Have a great day.

Paul