what does all this turmoil mean?

By
Mortgage and Lending with self employed
Well folks, unless you have been under a rock for the last few weeks you know that there is some serious problems going on in the mortgage industry. I have to tell you, although I am just as nervous as the next guy, I am very happy to be with a huge power house like GMAC. We have the liquidity to stay in this game for the long haul and the conservative stance that the company has been holding on to for the last few months is now starting to pay off. While other lenders have just stopped taking new applications and one of the largest lenders in the country is on the verge of bankruptcy, we are very confident that our conservative stance has saved us from any further disruption. GMAC is an extremely diversified company that has huge reserves of cash that will most definitely carry us through these rough times. Now is the time to call me if you are interested in buying a new home. I know a lot of you are waiting for prices to drop further but think about this; as prices continue to drop, underwriting guidelines continue to tighten up and the borrower who is waiting to buy that $500,000 home for $450,000 may face the crazy reality that qualifying for that 450k loan may be a lot harder or impossible compared to the 500k loan today. If you have large amounts of cash ready to plunk down on a home (that does not include equity lines!) then you are correct in waiting another 6mo to a year to buy that new home, but if you are like the majority of buyers out there who have great incomes but need as much loan to value as possible because they just don’t have a large chunk of cash to put down on a home then you should really start rethinking your buying strategy today. Call me, and let’s get started on a plan of action to get you into that new home now.- Ernie

Comments (1)

Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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Sep 12, 2016 11:42 PM