Albuquerque Real Estate with Joe Brooks

October 9, 2008

There is money still being lended out there!!!

Filed under: News — Tags: , — joebrookshomes @ 8:41 pm
Happy Thursday.
I received the following information from a lender friend of mind.  So if you are worried about not being able to get a loan read below.  As always feel free to call me if you have any questions.  Your ABQ Realtor Joe Brooks  505 977 3474
Home sales up 7.4%
Realtors’ data show pending U.S. home sales up 7.4% in August
FED cuts prime by .5%…….
Hey everyone: just wanted to let you know that we hear a lot of questions like ‘is there any money for mortgages?’ from the general public. The fact is there is money to lend….

Unfortunately the media is far more an influence in what goes on in this country than they should be.  I am pretty sure that many people throughout the country are under the impression that there is very little mortgage money to lend and probably little or no down payment assistance.  I think pretty much everyone in the industry knows this is not true.  But now, in addition to the fact that sales are slow, we are moving into what is normally a slower time of year, and many other economic factors are weighing on things, we have to overcome the perception that it is next to impossible to get financing.
There is money for mortgages.   Yes, the guidelines have become more strict.  But then, let’s face it, they needed to be.  We are, in essence, going back to the future.  That is a reality of the changing landscape.  For those of us who have been in the industry for some time it is going back to the basics of years ago.  For those newer in the industry look for those who have been around for some time and use their experience to assist you. 
The government programs are there and they are just fine.  Yes it is a little more work, but the homebuyer education and counseling that is required is extremely valuable and entirely worthwhile.Education is what will help keep people in homes and motivate people to buy during these times of lower home prices and interest rates.
If this is true, what money is hard to get then?
The money that is really tight (although not the only one) is the short term credit that business use to operate in lieu of cash flow timing. Here’s an example:If I have an order for 10,000 widgets, I may get a down payment from my buyer( or maybe not, if the customer is an A+ client,), but I need to obtain raw materials and pay WIP(work in process) costs on credit until my Accounts Receivables acquire the completed payment. This is a normal way a business ‘leverages’ credit to reduce the amount of cash reserves it maintains to ensure positive cash flow.The credit markets here are tight with the failures of Lehman Brothers and others….
The stock market and economy react negatively as businesses may slow down because of this…
I am taking apps and obtaining financing for clients the same as always….there are credit score bumps to rates, underwriters are scrutinizing files,etc.. but no one I knows has had a loan denied for LACK OF FUNDS FROM LENDER!!!!!!!

Stay positive…..spread the good news as well….

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