Mortgage banking organizations are in the news closing down offices or shutting down company wide. This economic downsizing is mostly due to the result of relaxed credit activity of sub-prime lenders over the past 5 or 6 years. The interest rates on these subprime loans are now adjusting to higher rates, making them unaffordable to many investors and homeowners alike, which in turn is causing mortgage delinquencies and defaults leading to foreclosures. Borrowers with good credit and documented income however are still having no difficulty in making their mortgage payments and getting new loans as well. Fannie Mae / Freddie Mac / FHA and VA mortgages remain fully available, underwriting is basically the same with not many changes, and settlement funding is as reliable as ever. Subprime loans on the other hand although still available, are difficult too find and the rates and terms have tightened up substantially.
The rising inventory of unsold and new homes are benefiting today's home buyers. They have more homes to choose from, the market is better situated for them to negotiate home prices, and mortgage financing remains historically low for those with good credit.
To discuss homes in the area or discuss buying or selling strategies in today's market give me a call or shoot me an email.
I AM @ YOUR SERVICE
Ron Stead 540-539-1200 rstead@shentel.net
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