The Beverly Hills Real Estate blog Friday 10-23-09

The Beverly Hills Real Estate blog Friday 10-23-09

Friday and I'm still holding my breath.  Did you see the Angel game?  New York at bat top of the 9^th, 2 outs, and bases loaded.  7-6 the score a 3-2 count... Talk about drama.  A fly ball to right for out number 3 and the Angels stay alive.  Tomorrow in New York where there's a 90 percent chance of rain with temps in the low 50's the series continues.

Meantime for us; Sunshine upper 60's at the beaches, upper 70's downtown and upper 80's inland. Another beautiful day...   Be sure to check out our daily video blog.  Go to facebook search Paraquat Kelley Joke and blog and it will come up.  It's fun.

Got some real estate news for you:

Welcome to C.A.R.'s Market Matters, your weekly market response guide. 

C.A.R. Mortgage Update

 For mortgages, 620 is the new magic number
Near historic low mortgage rates, favorable home prices, and the federal tax credit for first-time home buyers have contributed to home purchases in the past year.  However, the onset of the credit crisis, new regulations for home appraisals, and more stringent guidelines for purchases and refinances have resulted in confusion for some potential home buyers.

 While using a mortgage broker to find the best loan may work for some buyers, it may not always be the best route.  In the past, mortgage brokers could "shop" a loan to multiple lenders to help find the best deal.  However, new practices and procedures under the Home Valuation Code of Conduct (HVCC) have hampered mortgage brokers' abilities, namely that lenders may no longer accept home appraisals commissioned by brokers.  As a result, consumers may have to pay for new appraisals with each lender, which costs time and money.  However, consumers who are very busy or need guidance may find that working with a mortgage broker is the easiest solution.

 Qualifying for a mortgage under current lender standards is more difficult nowadays than in years past.  Beginning Nov. 1 or Dec. 12, depending on the type of loan, Fannie Mae is tightening its lending standards to the 620 credit score benchmark-including loans backed by the Federal Housing Administration and Veterans Affairs.  Borrowers with credit scores of less than 620 will find it very difficult to qualify for a mortgage.   However, to qualify for the best rates, consumers generally need credit scores of 720 and must have verifiable, steady income.

 As for loan type, most real estate professionals agree that a fixed-rate mortgage is the best choice for buyers and refinancers.

To read the full story, please click here.

To view additional articles, which also may be of interest to clients in the market for a new home loan, loan modification, or mortgage refinance, please visit the following:

 Long-term Obama loan modifications prove elusive
To read the full story, please click here.

Mortgage applications drop again as rates climb
To read the full story, please click here.

U.S. mortgage rates rise for second consecutive week

To read the full story, please click here. 

Finally rom Melody and me:

We just wanted to take this opportunity to thank you for your referrals. It's clients like you who allow us to continue serving the real estate community with such pride, and for that we appreciate you.

If you know anyone looking to buy or sell real estate, I'm ready to serve them. Feel free to have them call or email us.

Have a great day and see you tomorrow.