In today’s real estate market, when you find advertised loan rates on the Internet or any advertised home loan rate, they may not be specific to YOUR loan. Unlike years past, your rate will be specific to your situation. Lenders haven't always relied on your situation to determine your rate because it was always assumed that home values continue to go up in value. Well, of course that has changed, which is why we also now see changes in the way rates are figured. There are more defaults/foreclosures on loans around the country and investors are now looking at every angle to get a little higher return on their money to offset this risk.
In today’s marketplace, the lender will need to know your credit score, loan amount/loan to value, down payment amount, property type (primary, investment property, second home), income verification, debt ratio, employment verification, and more just to give you a proper rate quote. If anyone gives you a quote and has not had an in-depth conversation with you about your situation and your needs, most likely it will be inaccurate. Even if your current credit scores reflect some minimal flaws in your record, you might have a slightly higher rate because of it. Make sure you are dealing with a reputable lender and ask someone you know and trust to refer you to someone who they know to be an ethical loan originator. You need a mortgage advisor who understands the process and can see your loan through to closing with no surprises.If you follow this process and then get a rate that you like…lock it in!! There have been up to 4 rate changes per day and new rates come out every morning. Most lenders will do this for you with a verbal commitment. The markets are as volatile as ever, so take out the risk of higher payments and lock it in! Today’s rates are still some of the best in recent history.
Monday, July 28, 2008
Tuesday, July 08, 2008
OTHER RESULTS OF A SLOWED REAL ESTATE MARKET
The Memphis real estate market has slid into the biggest buyer’s market in years, and shows no sign of a recovery in the short term. By recovery, I mean, a more stable market where sellers can anticipate a better return on their home investment. The Memphis home market has “dominoed” into this state because of the national real estate market. If misery loves company, then scoot over. The world real estate market is also faltering as many of the investors in defaulted home loans span the globe and are not contained to the local USA.
Here is an example of that:
New figures from the Real Estate Institute of New Zealand (Reinz) released recently, show the number of real estate agents, salespeople, licensees and branch managers in Canterbury-Westland fell 8 per cent in the first half of this year. Nationally, the 19,059 people working in the industry in December 2007 fell to 17,453 at the end of June. The 2201 people left working in the Canterbury-Westland district shared 619 sales in May less than half of the 1276 sold in May 2007.
This market has become devastating to families around the world in free markets where real estate sales have blossomed over the last decade.
There is not a doubt that many Memphis real estate agents have also left the industry. This may help in the long run, as many agents were either part time and did not offer full service to clients, or they really had just started in the last year or two and were lucky enough to “ride the wave” of the home-selling market. Now that this is over, these agents don’t know how to sell or prospect and eventually throw in the towel. In the long run, this is a good thing for the consumer home-buyer.
Here is an example of that:
New figures from the Real Estate Institute of New Zealand (Reinz) released recently, show the number of real estate agents, salespeople, licensees and branch managers in Canterbury-Westland fell 8 per cent in the first half of this year. Nationally, the 19,059 people working in the industry in December 2007 fell to 17,453 at the end of June. The 2201 people left working in the Canterbury-Westland district shared 619 sales in May less than half of the 1276 sold in May 2007.
This market has become devastating to families around the world in free markets where real estate sales have blossomed over the last decade.
There is not a doubt that many Memphis real estate agents have also left the industry. This may help in the long run, as many agents were either part time and did not offer full service to clients, or they really had just started in the last year or two and were lucky enough to “ride the wave” of the home-selling market. Now that this is over, these agents don’t know how to sell or prospect and eventually throw in the towel. In the long run, this is a good thing for the consumer home-buyer.
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