Before all the hoop-la of the Sub-prime Market Meltdown & Lenders here and there going out of business, getting loans for a client was all too easy on most occasions.  In recent months, a shift has occurred and now we are back to a Market more similar to that of 6 to 7 years ago.  While the Sub-prime market has drastically changed, conforming loans for those with good credit remain the same.  Still though, the Market has changed.  Let's look at some of the things that have come about:

• Some areas have actually seen depreciated home values, others are now stagnant.
• Appraisals are being combed over with a fine tooth comb to make sure the worth of the collateral is tight and unwaveringly acceptable to the Lender.
• More than ever, ALL Mortgage Professionals have to put together each loan file as tight and as efficient as possible.  The days of 'Throwing it against the wall and see if it sticks' are over.
• The Media, in all their glory, created so much overly negative press about the Market and the Real Estate Professionals involved in it, that it has led many individuals to think it is a bad time to buy a home.  It has also led those who already own a home to shy away from acting on refinancing at all, thinking they can't qualify or that rates are too high.  I'll chime in on the rate thing once again.  If you think a 6% rate on a 30 year Mortgages is high, you may just be a renter for life or a less than financially savvy homeowner.
• The shrinkage of the Sub-prime Market has narrowed the pool of Lenders and the guidelines have become more stringent for those whose credit, property type, etc are outside of the norm.  The purse strings are tighter now than they have been for some time.

So, what does this mean for Consumers AND Real Estate Professionals?  Quite simply, it changes the way the Mortgage Application Process is handled.

It used to be that you go through the application, begin processing the loan, and set up closing.  Almost every Mortgage Application that was taken would be bought by some Lender, somewhere.  Not so much anymore. 

Now, a lot of Mortgage Applications are getting turned down because the pool of products has lessened.  I was talking to the owner of my firm earlier today and he brought up a good point.  All this means is that it changes the process, now many times A Plan will have to be involved.

Consumers - For those of you who have that dream of buying a home but don't think you would qualify, that's the greatest reason in the world to talk to a Mortgage Professional right now.  What better way to make sure you can buy a home sooner rather later than establishing a plan of what you need to do to get to where you need to be?  And the perfect way to do this is to talk to a professional.  Same goes if you already are a homeowner and want/need to refinance, talk to somebody now.   Establish a plan, most dreams and successes come to light by this very process.

Real Estate Professional- This is a similar type of thing with us now.  Instead of application = processing loan = loan closes, you are and will continue seeing application = loan gets turned down = no closing.  Yet, a slight change and adaptation needs to be placed upon today's equation.  It is application = loan gets turned down = Set Up A Plan = Consistent contact & follow up = Eventual Client.

Relax, take a deep breath, and formulate a plan.  Things aren't as easy as they once were and that is a good thing...for both Consumers & Real Estate Professionals.  There is now more of journey to everyone's desired destination, all it will take is a little planning this time around.