A couple of years ago a Real Estate Broker colleague of mine wrote a fairly basic summary about home loans for his web page:
So, as overwhelming and frustrating as it is to navigate the U.S. home lending system, it can be done. And although we have experienced some level of frustration and resignation when we have had to “jump through some ridiculously silly and bureaucratic hoops” on virtually all of our Florida home loans, almost every loan we have been involved with has successfully closed.
So what does it take to successfully obtain a home loan?
The first and one of the most important steps is to enlist the aid of a banker or mortgage broker that you trust.
Easier said than done?“Trustworthy banker or mortgage broker” ranks right up there with “honest real estate brokers and lawyers” as a rare commodity?
Maybe it does!
And if the simple advice and approach was inadequate for a potential client, he would refer the client on to a mortgage loans specialist.
Everything has become a lot more complex during the past year though. Some commentators tell us that things are on the mend and others shout out that the system is still broken. How are we supposed to make sense of these conflicting signals?
On the one hand, there are numerous stories reporting that the credit crisis has caused enormous changes in the real estate market - and in a very short space of time. We’ve gone from a situation where loans were handed out with virtually no restrictions to almost a lending freeze. So lease-to-own agreements are increasingly popular as more owners have trouble selling their homes and plenty of buyers can’t get a mortgage - but the deals are complicated, with pros and cons on both sides. Read the full story here.
Other reports are convinced that, with federal money recharging the financial system, many banks are ready to lend, but nervous consumers aren’t seeking loans and small businesses remain cautious about their borrowing. It’s going to take time for things to change, say industry experts, who predict that loan demand will remain weak into early 2009. Here’s the full story.
Our experience? The big banks have definitely withdrawn many, many programs and can be a nightmare to deal with at present. Other smaller banks who were not as extravagant in the good times are better able to respond to lending requests and have funds available. So shop around!
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