The beginning of tight credit

Posted at 11:56 AM, Mar. 25, 2007

Dear readers,

Many lenders have stopped originations on 100% financing, stated income loans and stated asset loans regardless of the borrower’s FICO score. Credit across the board is tighter now than 3 weeks ago.

As liquidity leaves the market, demand for mortgages will decrease and home prices will not be able to make significant gains. Although this is no 90’s repeat, it does present opportunities that have not been seen in a long time.

Opportunities? Yes opportunities! With less competition and a slower market buyers can take some time to determined where they want to live and which deals make sense for them.

Long gone are the days where decisions had to be made on the spot or in hours. This is a good thing! The previous market was not sustainable while this market could go on like this for years.

Increasing rents, higher cap rates, slow steady appreciation are all signs of a normal sustainable market. Does that mean that now is the time for you to buy or sell? Contact me for a no obligation, no hassle, no pressure, conversation.