Mine are not. Well, that's not 100% accurate: there is one (1) buyer I know of who has been unable to get mortgage financing since the onset of the "credit crisis". Her credit score was in the 500's. Thank goodness she couldn't get financing because that's how we got into this mess in the first place!
I would like to assert the following: there is no mortgage financing crisis. Do you agree?
Below is my 3+ minute rant about the Fed's latest move to ease the "consumer credit crisis":
I personally am very pleased that stated income loans are behind us. True, it's making realtors and mortgage officers work harder, but it's for the common good.
So far so good for all of our true buyers financing has not been an issue. It's good that the score need to be respectible for a a loan to be processed. It should have been that way all along... Thanks for your post. Have a great Thanksgiving!
Vickie-- Stated income loans were not good for any of us. I'm with you--thank goodness they are a thing of the past.
Diane-Glad to hear it hasn't been a problem for you either. Happy Thanksgiving to you, too!
Kathleen if people don't spend we will be in another great depression...thats the whole point of why they are doing what they are doing. Economies function properly when people spend money. Of course people need to live within their means but without spending we have nothing to sustain anything...business or otherwise.
The money they are pumping in is going to help because by adding liquidity they are forcing interest rates down to a level that more people can afford to buy homes. This is the kind of shot in the arm we need.
Bill--Mortgage rates weren't low enough at 6.25% for a 30-year fixed? Historically that's still pretty darn low.
I understand the argument that says consumers need to spend our way out of this recession and I don't think that's the healthiest way to go. I believe it is high time we invest ourselves out of a recession: investing in our crumbling infrastructure, investing in our businesses to make them more solid for the next period of growth, investing in our human resources so that we have a highly trained and highly skilled workforce. That's what I'd rather see than throwing tax dollars in making consumer credit more readily available. Consumer credit has been too readily available for too long and it's a short-term fix anyway.
Bring on a good, old-fashioned recession! It's necessary and healthy for the business cycle to reallocate resources to those uses which are most profitable. That's how we can be assured of solid long-term growth rates.
Have you come across any buyers who've been unable to get mortgage financing because of the "credit crisis"?
Kathleen and Bill - I love to see this cross-town rivalry play out on AR. Very interesting. And you both make excellent points. I agree with you both. How's that for being a wuss. Actually, I may agree a bit more with Kathleen. To me, the "financing crisis" is a bit of a red herring. I've not heard of a single buyer in our office not be able to get a loan approval, so requirements may be a bit more strict, but it seems to be far from a crisis. I also agree that we need to take some medicine and experience some pain. I feel like some folks think the government can just throw money around like it is monopoly money and everything will be Ok. At some point, the bill is going to come due so why push it off to our kids. Why not face it now.
That said, I don't think we can let the big banks fail. I think that bailout was warranted. I do think we need to let the Big 3 automakers go Chapter 11. They will burn through whatever cash they are given and be back for more soon enough. I worked in a non-union printing plant as a salesman for 5 years. We cleaned the clock of every union shop because our cost structure made more sense. Our guys still made a good living but we didn't have the ridiculous rules like the union shops did where they paid 4 guys to run a printing press that only needed 2 guys. So at any given time two guys were being paid to eat sandwiches and watch TV. I can't help but think there is some of this stuff going on at the car companies. They need to restructure the union deals and cut the # of dealerships in half to stay competitive.
Then again, I am just a realtor. What the hell do I know.
Al- We're Realtors who usta be probably everything there is to be so, in fact, we do know everything (collectively, kinda sorta).
Kathleen will will not be in a recession if they do nothing we will be taking a time machine back to 1929. This could be worse than the great depression!! I am talking nothing about buyers getting loans.
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