Something to be Thankful for. Balance.
Balance is a good thing. Today in the Los Angeles Times - Page B2 -
"Fannie Mae to tighten mortgage lending rules" Minimum 620 credit score and no more than 45% income to debt.
Followed by this story "Interest rates drop, matching record low" where the review how rates are now matching a record low of 24 years at 5.06%. But very few are applying.
If the system was not cranked wide open by too loose money we would not have had the blowout. Now the scarcity of banks willing to lend and the prevalence of regulators to be arbitrary and capricious leaves the lenders scared to actually extend credit.
So all you borrowers be prepared. Expect bigger down payments to be required. Prepare for slow responses. Prepare for delays. Be aware that the lenders are chicken for good reason. Sure it may be staffing reductions. And the hoops seem unusually silly.
But the reality is... If you do persevere you can take away some really terrific loan rates once you get approved!
So be Thankful. If you have the ability to buy right now you are likely to get better prices and the best rates for the money borrowed. Now that is leverage that will pay off for buyers with vision for long term profits.
Let me know if you need an introduction to a loan broker. I have two good guys that I can introduce you to.
Keith
310-391-0821
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