Mortgage Concerns
The DeBerry Team wants to make sure that the public understands the issue with the mortgage industry. Our job is to protect and inform you of what has happened and what is taking place. Texas is in much better shape than states such as California, Nevada, and other states on both the east and west coasts. The issue in our area is that investors came in to our neighborhoods bought either new or close to new homes to rent or to flip and did this without much money down if any. The lenders had programs that did not require documentation in some cases and when things did not work out for the investors, they just let the properties get foreclosed on. They had little if any risk. Next, some new home builders also put people into risky loans and that are now affecting some people in our area.
It is important to understand that home prices in the Dallas area have not risen like in other east and west coast states. We have seen modest price increases and therefore should not see a major price decrease. Employment in our area has been good and continues to grow year after year. The availability of affordable homes, low prices, low mortgage rates and a healthy Texas economy continues to bolster the home market here in Texas. Credit guidlines for getting a mortgage have been strengthened which will keep credit risky people from getting a home. This is not a bad thing. There is still plenty of money available to get 100%, 80/20, and 90/10/10 loans based on certain criteria. Credit scores of of 580 and up may still obtain a mortgage. There are down payment assistance programs and FHA loans that make it easier to get a home. In general there is a lot of good news!
The DeBerry Team works with key mortgage service providers in the area and just this morning we spoke with Wayne Lancaster of Bankers Financial in Plano, Texas. Wayne’s contact information is Ph: 972-712-9835 or you can email him at Wayne.Lancaster@bfmgtx.com for more information on the current mortgage situation. Here is Wayne’s advice for Sellers: Be prepared for a smaller pool of qualified buyers. Approximately 15% to 30% of potential qualified buyers may be affected by the increased tightening of the credit guidelines and diminishing mortgage products. Have a serious talk with your real estate agent that is experienced in both the buying and selling of homes. An experienced agent will make sure that the buyers they bring you are pre-approved> They will help you set a price on your home that is competitive. Buyers: Get pre-approved with a reputable lender. Be wary of some internet providers. It may take a little longer or there may be more stipulations before getting a mortgage. Refiinance: Don’t delay! Communicate with your lender. Don’t do anything that could negatively affect your credit. ARMs Borrowers: If your ARM is scheduled to reset in the next 2-18 months, you need to schedule an appointment with a mortgage professional right away. Don’t let a default or mortgage situation sneak up on you.
The DeBerry Team has worked with Wayne for many years and we value his opinions. We have other valued mortgage professionals that are supporting our efforts to inform and protect our clients. When we receive information from them we may post a blog or they may be posting their own. If you have questions, concerns, or need help with real estate, please contact me, Roxanne DeBerry at 214-676-8040 or email me at roxanne@thedeberryteam.com. For more information on the area and hot deals on homes please visit my website at www.thedeberryteam.com.
Loading ...
