For the past week or two we have been receiving calls from our clients asking if they are still able to get a loan. These calls have been for clients who are buying homes, are approved and just weeks away from closing.  All of the negative articles and news has consumers running scared and has pushed some of them under rocks, like chicken little... except the Sky is NOT falling!

Most people have heard the bail out plan that has been in the news this week is because credit has dried up and banks are not lending. While this is true on the commercial side, it could not be farther from the truth on the residential side:

• Residential lenders do have money to lend, and are more than willing to
• you CAN get a mortgage today, contrary to what you may hear
• Mortgage rates are at very reasonable levels

The Media has been spitting out all the bad with out telling any good. Do not get caught up in the negative! The fear of credit drying up is more on the corporate side:

• Banks are not lending to banks
• Corporate credit lines are being restricted or drying up all together

These are the problems that the bail out is dealing with. If businesses do not have credit lines they will not survive. American business runs on credit. Liquidity and faith in the banking system needs to be restored.

Last month Uncle Sam took over Fannie and Freddie. This was good news for the mortgage market, since a major source of residential money was now secure, one less thing to worry about. The FDIC has done a wonderful job of curing the failing banks and quickly shifting the nations deposits to stronger institutions with no more than a hic-up. The sky did not fall, and it probably will not fall. Real Estate has always been a great long term investment. The economy has always had its ups and downs and Real Estate has always rebounded.

So, Don't worry. There is money to lend, and at reasonable rates and conservative terms. You just need to find the right person that is not hiding under a rock that understands your needs and will be there when you get to closing.

Have a great week

Rob

Robert Rauf