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Home Lending Programs- THE REAL TRUTH

By
Mortgage and Lending with Guild Mortgage Company

 

Written by Tom Lasswell

Lynnwood, WA

Have you ever wondered why the public is UNCERTAIN about the current state of the real estate and mortgage markets?

Shame on you USA Today and the author of the cover story "Coping with the real estate slump".  I just happened to pick up a copy of the January 4-6 issue when my eyes caught this headline.  As a professional Lending Advisor in the Pacific Northwest I am so angry with all of the misinformation that is being splashed about our industry that is either not true or only partially true.  I would think that a publication such as USA Today would validate its sources of information.  I am in the markets each and every day assisting individuals and families in financing choices for real estate.  I know what products are available.

Your story states a recent Federal Reserve survey of lending officers indicating that they had tightened their lending standards, and this is the case.  However three emphasized statements that follow, STARTING WITH THE WORD "GONE", in this paragraph are not true.

Lets look at them as they are printed and clarify for your readers the information you tried to share...

  1. GONE are loans for people who have trouble paying their bills on time

Many people do not pay their bills on time.  Some pay late, a few days late, to 30, 60 and 90 days past due.  There are many home loans available for these individuals.  They are Non Prime Loans and they are available and make sense for

MANY different situations. 

The TRUTH is there are not as many of these as there once was under some of terms that were available last year.

  1. GONE are mortgages for 100% of the home price

Shame on you twice!  If you had checked with the largest agencies that still purchases home loans in the US, FANNIE MAE and FREDDIE MAC, you would see that these loans are still available and popular at low interest rates.

The TRUTH is you must have decent credit and verifiable income and sometimes, financial reserves to qualify.

  1. GONE are loans requiring no proof of income or assets.

Shame on you a third time!  Several large National Investors are making loans where both income and financial assets are STATED on the application and NOT verified.  They are in most cases good solid loans and are made to people with good credit scores and that have a down payment and/or equity in the transaction.

The TRUTH is there are not as many of these as there once was, and the information on the application as a whole must make sense. 

My hope for the future is that the information regarding mortgage products is correct.

If I had read your article, was going to buy my first home, or second home and wanting to partake of the American Dream with the opportunity of building long term equity and maybe even wealth, you would have STOPPED ME DEAD IN MY TRACKS.  

 

  

 

Comments (4)

John Cashion
Academy Mortgage - Dover, DE

Lets face it bad news sells papers.

 

Jan 23, 2008 11:15 AM
Joe Adams
Major Mortgage USA/Branch Manager - Montrose, CO
you have to love the media....... I want to stick a smiley face over their doom and gloom and force them to understand and know what is happening
Jan 23, 2008 12:02 PM
Rick Kellow
Cherry Creek Mortgage - West Bend, WI
FHA & Reverse Mortgage Expert
Excellent Blog Tom... truth is good common sense loans have and will always get done... the media will have its day with the bad press but the market will rebound and we will be back having great 2008...
Jan 23, 2008 12:46 PM
Anonymous
beverleelasswell
G.ood article very informative, all home buyers should read.
Jan 24, 2008 02:48 PM
#4