For the past week or two we have been receiving calls from our clients asking if they are still able to get a loan. These calls have been for clients who are buying homes, are approved and just weeks away from closing. All of the negative articles and news has consumers running scared and has pushed some of them under rocks, like chicken little... except the Sky is NOT falling!
Most people have heard the bail out plan that has been in the news this week is because credit has dried up and banks are not lending. While this is true on the commercial side, it could not be farther from the truth on the residential side:
- Residential lenders do have money to lend, and are more than willing to
- you CAN get a mortgage today, contrary to what you may hear
- Mortgage rates are at very reasonable levels
The Media has been spitting out all the bad with out telling any good. Do not get caught up in the negative! The fear of credit drying up is more on the corporate side:
- Banks are not lending to banks
- Corporate credit lines are being restricted or drying up all together
These are the problems that the bail out is dealing with. If businesses do not have credit lines they will not survive. American business runs on credit. Liquidity and faith in the banking system needs to be restored.
Last month Uncle Sam took over Fannie and Freddie. This was good news for the mortgage market, since a major source of residential money was now secure, one less thing to worry about. The FDIC has done a wonderful job of curing the failing banks and quickly shifting the nations deposits to stronger institutions with no more than a hic-up. The sky did not fall, and it probably will not fall. Real Estate has always been a great long term investment. The economy has always had its ups and downs and Real Estate has always rebounded.
So, Don't worry. There is money to lend, and at reasonable rates and conservative terms. You just need to find the right person that is not hiding under a rock that understands your needs and will be there when you get to closing.
Have a great week
Rob
This was just a quick rant... the negativity of the media always bothers me. Rest assured, if you apply with a reputable lender, your loan will close.
Robert - you are right, too much negativity. Commerce still moves on, folks still buy and sell and get loans and refi's. Just our job to get them in the right place. Good for your clients.
List and Sell (just keep on) Gary @ RentonHomeFinder
They have been spinning this at all levels...people can still get loans, car loans, home loans and credit cards. This is just as bad as when we were "sold" the Iraq war...fear creates buy in.
Yea! I know I could still get a loan... thanks for being positive.
Negativity in the media tends to discourage people. However, as you stated, there is still money to lend; the well hasn't run dry. People are still buying and selling homes and agents are still working hard; ok they're working a little harder today but that will bear fruit in the next 18 months.
one of our local mortgage companies just opened a third location..... tells me that there is still money to lend - - and still people looking to borrow!
My company is growing too. More than enough money.. .Just entirely too much negative press!
Wednesday, at our annual Association meeting, all of the bank representatives in attendance individually introduced themselves, and got a few laughs by each ending with, "Yes, we have money, and we are still lending for home mortgages".
Lynn, that is a common theme at our local Board of realtors too. We may actually do a "panel of experts" town meeting of sorts locally to get the news out that there is Money to lend!!!
Excellent post and I appreciate your positive message about what is going on with residential lending. Keep spreading the positive word.
Too many people subscribe to the 'sky is falling' mentality and don't realize all of the opportunity that is out there. It would be nice if the media would print some of the 'good news' instead of perpetuating the downward spiral. Attitude is everything and if the media turned their mentality around, I am sure things would improve. But people are gullible and believe what they hear instead of opening their minds to more than just the popular opinion.