We have seen the writing on the wall. Now, the hammer has dropped. Many subprime lenders tightening up their loan guidelines and 100% financing for subprime borrowers is getting harder to find.

How should Real Estate agents respond?

1. Align yourself with loan officers who have access to FHA/My Community loans. And remember, not all loan officers have been doing FHA. Some have only recently added this loan to their repertoire.

2. Ask your lender if they have access to the 'Community Reinvestment' loans offered by the large banks.

3. Become the trusted advisor. If you have a client with credit challenges, help them get educated about credit. A good starting point would be having them preview my free e-book titled "About Credit'. http://www.dallasloanguy.com/docs/about_credit.pdf . Although this is just a start, it will give your clients a good foundation of knowledge to build upon.

4. Beware of the credit repair companies.... who are more interested in collecting fees for credit repair than they are in DOING credit repair.

5. Be mindful of where your referrals are coming from. You may want to reconsider how much of your marketing dollars go to the referral sources that send you subprime business.

6. Talk to your lender. Don't be caught off guard by tightening loan guidelines. Get the clients prequalified as early as possible.

The world is not coming to an end.... but there are going to be some clients who could qualify last year that will not be able to get a loan this year. Don't let this be an excuse for a lack of business..... arm yourself with the tools to weather the changes.

 And remember... The DallasLoanGuy was doing FHA back when FHA wasn't cool.

Tom Burris
DallasLoanGuy.com
Dallas, TX

"Your Dallas Mortgage Consultant"

http://www.dallasloanguy.com/


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I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to My Blog and stay informed about current lending changes!!

While I personally focus on Texas Home Loans and First Time Home Buyers.... I do lend in other areas. We are in about 46 States and adding programs to bring full service to an area near you.