This is Steve Bechtolt of Wisconsin Community Bank in Monroe, WI. I asked him this question.
Has Mortgage lending really come to a halt?
There are many myth’s related to the mortgage industry that have been circulating for the past several months. Some of them are accurate while others seem to come from the best fiction writers known to mankind. The number one thing people need to remember is that they live in the Midwest/Wisconsin. Most news releases refer to the real estate market as “rapidly declining home values”, “record foreclosure rates”, “Bad exotic mortgages” . Don’t get me wrong, Wisconsin is feeling stress in the mortgage industry also. But no where near the level that the national news media is reporting.
Mortgage programs are readily available. Granted, many low or no down payment mortgage programs have gone away. This does not mean that deserving home buyers can no longer get a loan. Individuals and couples with a satisfactory credit history still have many loan options available to them. The biggest change that people need to get use to is understanding their credit history and their credit score. Credit scores now play a much greater role in determining
a borrowers interest rate. A borrower who has not been diligent in maintaining a satisfactory credit score is finding they do not qualify for the lowest interest rates available.
To summarize, mortgage loans are still available for potential home buyers. Rural Housing still offers zero down payment loans to qualified borrowers.
It is a great time to buy a home. Property values are stable, interest rates are at record lows. There is an up to $8,000.00 Stimulus package tax refund available for First Time Home Buyers who purchase by
12/01/09. Banks have long term mortgage money to lend.
Steven L. Bechtolt
Vice President Loan Originator
1717 10th Street, PO Box 100 Monroe WI 53566
Direct: 608-328-4016 Cell: 608-558-2539
Fax: 608-328-4083
sbechtolt@thewcb.com
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