Financing in 80916>Question Details

Maria Gilda…, Real Estate Pro in Manchester, CT

Question to Loan Officers and Mortgage Brokers. Do you find the lending restrictions these days affect adversely the housing affordability. Elaborate.

Asked by Maria Gilda Racelis, Manchester, CT Fri Feb 17, 2012

Realtor Magazine Published today, "While today's report indicates that home ownership is within reach of more households than it has been for more than two decades, overly restrictive lending conditions confronting home buyers and builders remain significant obstacles to many potential homes sales, even with interest rates at historically low levels." Please tell us what are the most common obstacles you encounter in getting a mortgage for your clients.

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George Raymondo’s answer
Number one issue is by far is credit. As you know we are going through a cycle where a huge percentage of our population has in some form or another been damaged or affected by the downturn in the economy or the housing market. But with a little work and patience most people seem to be able to put their credit issues behind them. I still can't figure out why more consumers don't take advantage of government insured loans like FHA, VA or USDA, the qualifying is so much easier than going FNMA or Freddie Mac.

As far as income is concerned, it doesn't seem to be an issue; people now realize that you've got to show income documentation in order to qualify for a home loan. With interest rates at an all time low and property values where they are, it's now more affordable than ever to buy a home. But there are those out there that still believe the market is still going down and that may be the case in some areas, but overall I've seen the market hold its own for the past several months.

The key in my opinion is for every R.E. Agent to have a seasoned Loan Officer to work with, someone who truly understands the meaning of not trying to put a square peg in a round hole. Since the demise of the Sub-Prime Lending Industry, most of the dirtballs are out of the business, meaning if you have managed to hang in there as a Loan Officer or Realtor during the past couple of years, you must be doing something right.

The main thing prospective home buyers need to understand is, buying a home takes a little planning ahead, if you know you want to pursue buying a home, speak with an experienced Loan Officer in advance. Take that first step; if you do you'll know up front if you have any credit issues what you have to do to rectify them. Having all your ducks in row is crucial. The greatest asset a home buyer can have is a good R.E. Agent and a great Lender. The two make an unbeatable team and the making for a smoother transaction.

Best of Luck!
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