Are you well versed in mortgages? You should be, the mindset "Its not my job man" really has changed! If you want customers...you have to know your business. Even if mortgages are not your level of expertise, don't you think your customers will benefit by what you know?
Recently there have been many issues that have come up across the nation...issues that need to made public...issues that if the customer understood in advance...issues that would not cost a professional....their time, there energy and their reputation.
In most instances more transactions would close because of the better understanding of the entire process, while other's would never get started because these buyer's would in fact not be buyer's due to the new guidelines.
I am not that different from a consumer...some of the language is just over my head. When it comes to mortgages...
I need it broken down for me...broken down in the language that I understand, a language consumers would understand.
Recently FannieMae changed some guidelines...it's not just our market...it's the "DECLINING" Markets..
Fannie Mae Definition of a declining market: A declining market is one in which home pricesare currently declining, as determined by the tracking of home prices in a certain geographic location.
This is determined by zip code through the Declining Market Indicator tool.
When a property is identified, a 5% loan to value (LTV) reduction is required from the maximum financing allowed per the applicable product.
All conforming conventional and jumbo mortgage products apply.
So if someone qualifies for 100% financing and its in a declining market based on zip code...it is no longer 100% financing as the buyer will in fact have to put a 5% down payment.
It can affect investment properties as well as primary residence's increasing the down payment to an additional 5%.
If the zip code does not indicate the property is in a declining market but the appraisal states declining market...these guidelines will apply.
It makes perfect sense as a Real Estate Professional to understand the basic mortgage information.
We have to speak the language of the consumer...so they understand!
So go back call your loan officer's get an education...help yourself...help the consumer!
If you would like to know if you are in a declining market based onFannieMae guidelines contact your Mortgage Professional...also there is great information for all on www.efanniemae.com.
P.S. FHA and VA loans are not affected by the declining market policy.
Disclaimer: The opinions expressed by The Activerain Network and it's members and those providing comments are theirs alone, and do not reflect the opinions of Midori Miller and CENTURY 21 Sundance Realty. Midori Miller and CENTURY21 Sundance Realty are not responsible for the accuracy or content provided by The Community.