Lenders, Buyers, Sellers....................

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Being in the real estate business, I run across all kinds of people. Lenders, Home Inspectors, Buyers, Sellers, etc.

The first question a buyer will ask me is "how much will the house payments be per month?" Well, it all depends on the interest rate, money down, price and lender.

Some lenders charge more than others for their services. So, be sure to ask your trusted Realtor for a list of lenders that they have worked with and know will not only get the job done, but get it done well for you, with your best interests at heart.

If someone with a credit score in the 700's or more seeks a loan, lenders should be falling all over themselves for that business. That means they pay their bills, and, on time.

There are some with "bruised" credit and lower scores in the 500's that require more attention. These folks may not pay all of their bills on time. These buyers typically will pay a higher interest rate, as lenders see them as a bigger risk, as someone that may default on the loan. These people will pay more up front and each month. Usually, these buyers ask for and have been receiving 100% lending. That means they do not have any money saved for a downpayment.

Downpayments used to be the norm in the home buying business. If you didn't have at LEAST 5% down, you had no business purchasing a home. Those times have changed in these past few years. Changed so, that the lending practices have, in my opinion hurt both buyers and sellers.

Buyers are damaged being over-qualified for homes they can not afford. Getting 100% financing, making them not feel obligated to see out the life of the loan. If they do not even own a brick, they are more likely to defult on the loan and walk away.

Sellers are damaged because of all of the defulted loans out there. The homes go to foreclosure and Sheriff's Sales, lowering property values across the board. How would you like to have a $400,000+ home right beside a guy that defaulted on his loan, got mad, busted out all of the windows, stopped paying his bills and let the house go until the Sheriff's Sale?

That story may sound extreme, but it happens, in fact it happened to a listing of mine. The home I had listed for sale at $400,000+ did not sell. The feedback from each showing was they were "concerned about the neighborhood issues." The home was drop dead gorgeous too, still is.
And, it's available! Give me a call if you'd care to see it!!!!!!!!!!!!!!!

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