RyansRangers Posted August 13, 2007 Author Share Posted August 13, 2007 Spoken like a true realtor. I have a feeling inventories are going to skyrocket... things getting worse before they get better. This is a major correction likely to last 5-10 years... I am not a realtor, I am a Mortgage Broker who see's that if you fit the criteria you can get a better deal now that 8 months ago Link to comment Share on other sites More sharing options...
Mark The Homer Posted August 13, 2007 Share Posted August 13, 2007 Is it really scary times, or were the recent past times unrealistic or reckless? I bought in 1986. Because the seller insisted on it, I had to use a conventional mortgate, and I was required to put down ten percent. Link to comment Share on other sites More sharing options...
RyansRangers Posted August 13, 2007 Author Share Posted August 13, 2007 Is it really scary times, or were the recent past times unrealistic or reckless?I bought in 1986. Because the seller insisted on it, I had to use a conventional mortgate, and I was required to put down ten percent. a little of both. Its not that scary its just the amount of people you can help is way down. The people that were borrowers 2 years ago are no longer borrowers. However if you are a qualified borrower things are pretty much the same. Link to comment Share on other sites More sharing options...
Kilmer17 Posted August 13, 2007 Share Posted August 13, 2007 Jumbo Loans are now at 10+ percent!! The question I have is this, if I was looking at a house priced at 600K, new construction subdivion with 2 houses sold out of the 250 being built, what kind of room do I now have to put the screws to the builder? I dont need to borrow 400 plus, so the jumbo mkt wont affect me, but it certainly WILL affect the majority of their prospective buyers. Is 30% too much to cut off of my offer? 25? Any pros advice would be appreciated. Link to comment Share on other sites More sharing options...
Destino Posted August 13, 2007 Share Posted August 13, 2007 Spoken like a true realtor. I have a feeling inventories are going to skyrocket... things getting worse before they get better. This is a major correction likely to last 5-10 years... Where? In NoVA homes sales are already increasing over the end of last year which was terrible. The amount of foreclosures available are having an impact on the market but the loans causing these situations were short ARMs and the majority of those will have entered their adjustable periods by the second half of 08. Things aren't going to get too much worse. I dont' think we'll see lending standards like those in 05 anytime soon though. Link to comment Share on other sites More sharing options...
RyansRangers Posted August 13, 2007 Author Share Posted August 13, 2007 Jumbo Loans are now at 10+ percent!!The question I have is this, if I was looking at a house priced at 600K, new construction subdivion with 2 houses sold out of the 250 being built, what kind of room do I now have to put the screws to the builder? I dont need to borrow 400 plus, so the jumbo mkt wont affect me, but it certainly WILL affect the majority of their prospective buyers. Is 30% too much to cut off of my offer? 25? Any pros advice would be appreciated. if you are dealing directly with the builder feel him out. 30% is a lot to ask for. If he is in desperation you can negotiate hard, if he is not panicked yet then you wont have the same room. Link to comment Share on other sites More sharing options...
RyansRangers Posted August 13, 2007 Author Share Posted August 13, 2007 Where? In NoVA homes sales are already increasing over the end of last year which was terrible. The amount of foreclosures available are having an impact on the market but the loans causing these situations were short ARMs and the majority of those will have entered their adjustable periods by the second half of 08.Things aren't going to get too much worse. I dont' think we'll see lending standards like those in 05 anytime soon though. I agree it cant get much worse, but it wont be like 03-05 for many moons to come Link to comment Share on other sites More sharing options...
Destino Posted August 13, 2007 Share Posted August 13, 2007 if you are dealing directly with the builder feel him out. 30% is a lot to ask for. If he is in desperation you can negotiate hard, if he is not panicked yet then you wont have the same room. I've seen banks turn down 30% on short sales, it would be amazing if he could get a builder to agree to that... though his tires would probably be slashed. hehehe 10% however could be accepted and 10% off a new home at that price is huge. Link to comment Share on other sites More sharing options...
Kilmer17 Posted August 13, 2007 Share Posted August 13, 2007 I have to imagine the builder is going to be in trouble. The house I want is in the middle of the price points for this neighborhood. I have to think the ones in the 7s and 8s are going to be hard to sell with jumbo prices that high. Im in no hurry, so I'll probably offer it wayyyy low and let him/her say no. Then come back in a month or two. Link to comment Share on other sites More sharing options...
Hooper Posted August 13, 2007 Share Posted August 13, 2007 I live in crazy LA and I finally have enough money to buy a house in the area I want to live. And I'm going to wait. This market terrifies me. Link to comment Share on other sites More sharing options...
RyansRangers Posted August 13, 2007 Author Share Posted August 13, 2007 California is one of the exceptions to the "good time to buy a house" rule. With declining markets in Cal, texas you have to be careful your not buying a depreciating assett Link to comment Share on other sites More sharing options...
carlsbadd Posted August 13, 2007 Share Posted August 13, 2007 My overall take on the market is that is you are a Loan officer that can lend in multiple states there is enough business out there to make a good living. The last 2 years I worked in Wholesale and had 3 lenders shut down that I worked for, I lost a lot of income and am now back in the retail side. I found a good company that has lots of leads from around the country and the purchase market is good in several states and in states like PA and NC it's much easier to do manual underwrite of FHA loans. The business is out there and as more lenders and banks go out of business there will be less programs but that's OK . It's been the wild, wild, west the last few years so many of us loan officers will just have to work harder to keep up . Link to comment Share on other sites More sharing options...
UtahSkinsFanatic Posted August 13, 2007 Share Posted August 13, 2007 It is crazy right now. Last week I had four refis ready to close, just waiting on the Docs and then got a call stating that the loan programs were being discontinued immediately. So I am in the process of shopping the loans again. It could be worse. A fellow Loan Officer had 5 closings last week and they were just waiting for funding. A few days later the loan company goes belly up and will not fund. So ten families are now thrown into turmoil. IMO, if you are a buyer and can fully document your income I think you will be fine. If you can't and have to State the income it will be a lot harder. As an Investor, I actually love these conditions. I am changing my strategy and starting to hit the Seller Financiers. The market here is still appreciating double digits a quarter. So I don't have to use my credit to get properties and can still make money by the appreciation. Link to comment Share on other sites More sharing options...
RonJeremy Posted August 13, 2007 Share Posted August 13, 2007 I will weigh in on this topic later. Right now I am getting ready to lock all of my Alt-A loans that are currrently in the pipeline. Guidelines for Alt-A will be changing dramatically today at 5:30 p.m for the company I work for. :doh: Link to comment Share on other sites More sharing options...
Drockvb Posted August 13, 2007 Share Posted August 13, 2007 What are the advantages and disadvantages with locking in a rate with a mortgage company? I will probably buy within the year. Would this be a smart move? Link to comment Share on other sites More sharing options...
RyansRangers Posted August 13, 2007 Author Share Posted August 13, 2007 What are the advantages and disadvantages with locking in a rate with a mortgage company? I will probably buy within the year. Would this be a smart move? you generally cant lock a rate in for over 60 days. The longer the lock the higher the rate. If you do lock a rate try to get a floating rate lock which allows you to take advantage if rates drop Link to comment Share on other sites More sharing options...
RyansRangers Posted August 13, 2007 Author Share Posted August 13, 2007 I will weigh in on this topic later. Right now I am getting ready to lock all of my Alt-A loans that are currrently in the pipeline. Guidelines for Alt-A will be changing dramatically today at 5:30 p.m for the company I work for. :doh: You guys still have alt -a :laugh: most of the lenders I use have gotten rid of Alt A Link to comment Share on other sites More sharing options...
jbooma Posted August 13, 2007 Share Posted August 13, 2007 I will add it is reassuring to hear lenders now are not just giving everyone money but it is hard to sit here and feel sorry when they are mainly responsible for what is going on. If they had better standards before then we wouldn't have as many foreclosures as we do now. Reminds me of the internet boom, when everyone tried to jump in and and get money without the proper backgrounds they needed. Link to comment Share on other sites More sharing options...
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