If you haven't checked out Todd Clark's post "Another sad day for logic...Another real estate broker turned down for a home loan" then I suggest you read it and realize that this is going to become the norm rather than the exception. It really is mind boggling that the Realtor didn't qualify for a loan because he works on commission - yet they DID give his wife a loan and she's HIS employee!
This is a prime example why creative financing is going to become more and more important in this real estate market. The new federal guidelines make it extreeeemely difficult for buyers to qualify ... the substantial down payment (20%), high FICO scores (700 or better), verifiable income and assets, etc.
I heard something interesting on Fox News early this morning ... a Las Vegas attorney predicts that the lenders are going to compensate for lower FICO scores because there are so many people who are having tremendous credit problems. Don't know if all of you know this, but if someone goes to a debt counseling company that renegotiates the repayment terms, it is viewed the same as a Chapter 13 bankruptcy because the account is NOT being paid as agreed.
With more and more people heading in this direction, there will be more and more people who cannot qualify for a home loan. So, tell me ... WHO is going to be ABLE to buy your listings? As the attorney said, if lenders don't start making adjustments there won't be anyone left to loan to. Sad, but true.
What to do? Start learning about Creative Financing ... there's no bank, no federal guidelines. No, I'm not saying don't qualify the buyer - you want to know their income, expenses, etc. because you don't want the seller to get hurt, but the seller doesn't have to adhere to the strict guidelines set down by the government because THE SELLER BECOMES THE BANK!
The time for discovering how to use creative financing in your business is TODAY! Help your buyers and sellers ... AND yourself ... by getting a jump on your competition. Yes, YOU can learn how to become an expert in creative financing. After all, what would have happened in this case if the wife was a stay-at-home Mom with no income of her own? That's right - the deal was lost!
Check out the manual just for Realtors at: Creative Financing for Realtors
"Mrs. Real Estate"
Road to Wealth Inc.
E-Mail: Mrs. Real Estate
P.S. If you haven't already done so, sign up for our FREE 7-day training e-course for Realtors ... Whether you are a" rookie" or a seasoned professional you'll find ideas you can use. Sign up at MrRealEst8.com