Lenders are giving mortgages

 

CNN or your favorite media outlet is probably giving out incorrect information. Lenders are giving out mortgages. Granted they are dealing with people who have employment and good credit scores, but that should have always been the case anyway. America may not be in the economical downturn it is in today if that policy had been followed in the years 2000 thru 2005.

 

I have been told by three local lenders that there are plenty of loan programs available for qualified buyers, including first time home buyers. As far as the media is reporting, there are credit problems in other areas of lending, but not home loans for qualified buyers.

 

 I repeat “Qualified” to make all my readers understand that lenders are requiring full documentation on employment and income. The sub-prime mortgages are gone.

 

As the U.S. Government bank bailout begins to take effect[1], more and more banks will receive funds to provide as mortgages. At the same time more and more banks are re-negotiating with their current mortgage holders or troubled assets, giving them more confidence to return to aggressive lending, excluding sub-prime loans.

 

Mortgage rates have dropped significantly in the past month. Yesterday, Dec. 5, some loan program rates dropped under 5% for a thirty year fixed. Coupled with the best prices in years, not purchasing a home now would be a bad decision. If you are an investor, putting down 20% – 25%, you will make a considerable cash flow with the first month’s rent. If you are a renter, you can stop paying your landlord’s retirement and vacation funds and start on your own.

 

Frank Crowley

Keller Williams Realtor

San Diego, Ca.

760-685-2380

 

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