Under much scrutiny and acute observation, the Mortgage Industry faces times that our economy is currently ill-prepared for.  It has for some time.  I recall stating six months ago in a post, that around this time we'd be feeling the brunt of the burden being lifted off our shoulders.  I was wrong.  See, guys really can admit when they are wrong:-)

Ride out the storm, just don't stop.

There is good news and bad, I'll start with the latter:

-  You are going to need money to buy a home.  Sorry, that's the fact of the matter.  Now, folks will say that current economic and financial conditions prohibit them for being able to do that (have extra money of any kind), yet that's where we are at.   Perhaps I'll write a post soon that illustrates simple ways to save.  And you won't even have to pay for the privilege of my sharing;-)  Speaking of non-profit entities, make all checks payable to the International Bank of Jason Sardi. 

-  Credit Scores are more important than you may think.  Beyond the credit history of your payments to the precious folks you owe money too, Credit Scores are crucial!  And I'm not talking about just getting approved for a loan, I'm talking about the interest rates & costs provided to you because of your score.  It can mean big bucks monthly, even bigger bucks annually and over the life of the loan, if you chose to keep it.  Of note, if you want to steal somebody's identity, make sure it's a good one.  There is little that is worse than dealing with someone who stole the identity of somebody else who shows the chronic disappointment of never being able to pay their bills.

-  Down payment assistance looks to be dying a slow death.  I'm not entirely opposed to DPA's (Down Payment Assistance) but I must say that it is long overdue that we rely on ourselves rather than help from somebody else.  I'll get to that in a moment...

-  If you can't document your income, you're in a bind.  The 'under the table' lifestyle is one that lending institutions seem less and less inclined to lend too.  If we were playing a game of spades, Uncle Sam is holding the joker.

Onto the Good News:

-  There's a large inventory of homes on the market.  Patience & Persistence will prove wise.  You can be picky but don't let time pass by too fast, those who hesitate ... it may cost.  When you find, buy!  There's plenty of money to be made in any market, especially this one.

-  Cheap money is still available.  I'm amazed at how spoiled we've become.  A 6.5% fixed rate on a 30-year Mortgage is high?  Wowsers, get a grip.  That's cheap money, if you qualify.  And generally speaking, I don't care what interest rates are, you can buy a home or pay on the one that your landlord already bought.  That's your choice.  Sometimes, renting is the better choice.  In the long run, that's rarely the case.

-  Your sample of Mortgage Professionals has shrunk.  Now, this may be constued as a negative thing, but I dare say it is just the opposite.   While you'll probably never get rid of every seed that comes from a bad apple, you can be somewhat sure that those still doing business are there for a reason.  Utilize their knowledge and services, the 'Talking Heads' are going out of season.

I made mention earlier about relying on ourselves, rather than assistance programs that may get us into a home in the first place.  I'm not the biggest advocate of those programs and am certainly not their biggest detractor, but let's think about this.  I have a problem with the sales pitch involved.  Buying a home with no money down is certainly a convincing tale.  Yet, if anything goes wrong with your home ... guess who has to pay for it?  Yup, you.  Having money in the bank after closing is something I'll harp on until the cows come home to be milked.  It's in your best interests, that's all.

One other sidenote, when the media has an appetite, we're for dinner.  Watch your local and national news, but please remember they don't know shit.  These are the same organizations the are ridiculing each other.  'News' has become what the other 'News' organization is doing.  Right....

All else economical, that's a different story.  Just hold on folks, the calm will come.