Market Turmoil and the Mortgage Mess
September 29th, 2008
How does this affect me??
Unless you’ve been hiding under a rock for the past few weeks, you’re undoubtedly aware of the major changes that have been going on in the financial world. Because I’m not an economist, financial markets wizard, or former Wall Street banker, I would never hold myself out to be someone that could provide you with great insight into the “why, how, and what” of these changes. However, I can provide some information on how these changes may affect the average person mortgage and their ability to obtain a new mortgage.
First and foremost, the mortgage world and the real estate market are nowhere near the “doom and gloom” scenarios that are widely broadcast in the mainstream media outlets. Here in the Raleigh-Durham area, we are especially lucky because, even though sales are slower and transaction counts are lower, the prices are not dropping (on average). Real estate values are still appreciating, just not as much as we have been use to in the past. Sellers are finding that they have to be more realistic about the value of their home if they want to sell, but by no means are we seeing depreciation at this time. It certainly is a buyer’s market, which is good if you’re in the market for a new home. Remember that our area did NOT see the dramatic run-up in values that some areas saw, hence we are not (and likely will not) see values go down.
Secondly, banks are still VERY hungry to lend money to people who are in the market to buy or refinance. Anyone seeking a mortgage that has average or above average credit, 3-5% to put down, and an appropriate income is almost certain to be able to receive a loan. What has changed recently is that marginal buyers, especially those without any money for a downpayment, are having a harder time finding a loan (there are still a few 100% options available).
Lastly, if you’re interested in finding out what you can qualify for or you would like to find out if refinancing makes sense, call a mortgage professional. One thing that hasn’t been discussed very much recently is that rates have actually DROPPED. A competent mortgage professional can examine your situation and very quickly (usuallly all it takes is a 10 minute phone call) tell you how to proceed. Don’t let all the bad news get you down. There are still many, many loan options out there and a local mortgage professional can help you find the one that best suits your individual situation.
Need fast help? Want honest advice and low rates? Call Andy Holloman at Carolina Mortgage Consultants, 341-4919 for a free mortgage analysis.
For real estate questions, contact Michelle Edwards, Keller Williams Realty, 919-306-1639. As a full time real estate consultant, Michelle can give you up-t0-date market information about your area and what properties are currently selling for. Michelle’s knowledge of the marketplace is a definite asset in pricing your home correctly and positioning your home for a timely sale.
This post provided by Andy Holloman, Carolina Mortgage Consultants, a member of the Michelle & Associates, Inc. team.
