Where Oh Where Has All The Money Gone?

What's Up the Mortgage Industry?

So the news is filled with it. We have all heard about lenders going out of business, the sub-prime market going to hell in a hand basket and now you hear you can't buy a home with less than 20% down.

What is Really going On?

Some of the news you read is true. Yes interest rates are up. Yes the sub-prime market is pretty much non-existent now, but there are still options. And yes a lot of lenders are closing their doors.

What is going on now is a lot of options that brokers had available are not there. The big banks like Wells Fargo, Bank of America, etc and their affiliates are still doing competitive rates and are still doing some 100% financing. Jumbo loans (loans over $417,000) are still available. Brokers with a good working relationship with the larger lenders are also able to help you find a loan.

This frenzy over the mortgage market is very reminiscent to the whole dot bomb era where everyone was a paper millionaire one day and the next just a 28 year old techy looking for a job.

There is a shake up going on, but acting like the sky is falling isn't a rational reaction to it all. If you are looking for a loan, do your homework! Find a lender who is reputable and who can explain to you what is really going on in the market, and what they are hearing from industry leaders.

If you are looking to buy, there are still a lot of options out there, you just have to be reasonable in your expectations.

Feel free to contact me if you have any questions or if you would like the recommendation of a lender to speak with.