I tend to be informed on Real Estate issues. I would like to give you some timely info on the mortgage market. At the time of this post over 100 national lenders have closed their doors. The credit market is experiencing unprecedented turmoil. What does this mean to out Real Estate market?
Sellers can no longer be reluctant to accept offers or reduce prices. Tightening credit and diminishing mortgage products will continue to reduce the pool of qualified buyers. This along with increase in national inventories, means now is not the time to hold out for the "best" price possible.
Buyers with credit issues or who have difficulty providing required documentation can no longer sit on the fence. If the market conditions changes, buyers who qualify for a loan today may not qualify a few weeks from now for the same exact loan. Many lenders have stop offering no Doc loans, and some lenders have even pulled back on all forms of stated loans. As market conditions continue to change, a buyer's pre-approval status can disappear even more quickly, delaying or killing the transaction.
Subprime and Alt-A refi candidates, especially those with ARMs schedule to reset over the next 12 months, need to act now, even those with a pre-payment penalty. ARMs borrowers struggling with monthly payments now might be shocked to know that monthly payments can double in some cases once an ARM resets. I hope this post was informative to you. If you have any questions feel free to email me findit@LehighValleyRealty.com Have a great day!
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