The Mesquite Nevada Real Estate Blog: October 2008

Are Mortgages Available for Homebuyers? Are Mortgages Available for Homebuyers?

Call it credit crunch, credit freeze, call this economic/financial crisis whatever you want!  Consumer confidence is GONE right now and all we're hearing is that 'it's only going to get worse!'  When you're in the real estate business, the news is even further negatively duplicated.  So, what are we to do?

Tonight, I attended a dinner party and don't you know it, the hot topics were politics and economics.  Being the only person in the room that was in this business, I felt like I spent the entire evening defending MY position on the economy.  Personally, I think that my position is reflective of the REALITY of what our current status concerning the economy is right now.  However, at every turn, all I heard was complete negativity.  Despite my reassurance that I have not had ONE single client turned down by the bank for a mortgage and worked with three new buyers this week, every one of these people remain skeptical because they believe that what they have read in the paper and seen on the news is ALL FACT.  

Let me add that each and every one of the people attending this dinner were highly educated.  Now, the kicker comment--"How can they print something that's not true--the newspaper has to be able to validate what they print, don't they?"  Can you believe it?!  

Think about this:  In 2006 it was a SELLER'S market--no doubt, you were going to make money on the sale of real property and buyers were competing for this real property, many of which would go above the list price in order to obtain this valuable property.  You, the seller, now the BUYER, would turn around and bid on another piece of valuable property and became satisfied homeowners once again, expecting to see real appreciation in their new purchase over the upcoming years.  Likely, you did not get a 'great' deal on your purchase but, you made a mint on the sale of your former home.

NOW, in 2008, it is a BUYER'S market!   Sellers are not getting the appreciation this year as they have in recent years.  You will sell your house for less than you thought you were going to a year ago. Price your home to sell and it WILL sell. Without a doubt, you're going to turn around and be able to purchase real property AND you're going to be able to purchase that property at a GREAT low price, expecting to gain appreciation over the upcoming years.  Conversely, you did not get a 'great' deal on the SALE of your home but, you DID get an incredible deal on the purchase of your new one!

The way I look at it, if you're 'moving up,' selling your current home and buying one a step up, is a SMART move in this market!  It's Economics 101!  

Now for the mortgage availability question--I phoned one of my trusted loan originators to see if I was just looking at this through rose-colored glasses and here are her answers to a couple of my questions:

I hear you’re not lending any money right now?

"Oh, that is SO not true!  We're definitely lending money for mortgages and, as you know, have many satisfied customers!"

Has your bank tightened their criteria for lending?

"Who it is tougher for now is those who don’t have good credit.  That’s where things have been tightened.  If you have good credit and good DTI (Debt to Income Ratio), nothing has changed!  Our bank has not changed its lending criteria since second quarter ('08)."

So the news is bogus?

"Debe, nothing has changed as far as our lending criteria in the past few months!  We’re a solid company,  lending solid money!"

I have heard that a significant number of mortgage brokers are giving up the business--even those brokerages which I thought were ‘solid?’

"BROKERS are struggling because a lot of the banks that they used before HAVE dried up!  Bad news is what’s reported, not the good!  That’s why I’ve stopped reading the paper!"

This is just a tid-bit of our conversation.  (Frankly,  I couldn't type as fast as she was talking and I didn't want to misquote!)   Now if we can only get the media to make ONE simple phone call to a lender and write the FACTS, so that the public can gain some of their confidence back!  

I don't know about you but, sometimes I feel that it's 'me against the world' with respect to this issue!

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About the author:

Debe Maxwell is a Charlotte Residential Real Estate Broker, Certified Neighborhoor & Relocation Specialist, ABR & e-PRO who can assist you with the purchase and/or sale of real estate in the Charlotte NC Metro Area.  If you're relocating to or from any other area of the country, Debe connects you with any member of her team of relocation professionals in your destination or exit city of choice.  The destination service is of no cost to you!  The Maxwell House Group's quality service guarantee puts this team far ahead of the competition; providing unsurpassed customer service is their #1 priority!  Debe Maxwell -- Helen Adams Realty -- 704.491.3310

Copyright© 2008 By Debe Maxwell, All Rights Reserved...**Are Mortgages Available for Homebuyers?**

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Disclaimer:  All information provided by this author is strictly an opinion, is not guaranteed, may be based on information collected from several sources, which may or may not be deemed reliable at the time of researching this article and may be time sensitive.

Let's go shopping for Charlotte NC homes for sale!