Real Estate and borrowing, then and now

Reblogger
Real Estate Agent with Keller Williams Capital Partners Realty 277320

A captivating journey through the evolution of real estate borrowing! This blog brilliantly highlights the contrasts between the past and present, shedding light on the changing dynamics of the real estate market.  A must-read for anyone keen on grasping the nuanced landscape of borrowing in the ever-evolving realm of real estate.

Have a super fantastic week!
Joe Jackson, Realtor-KWCP

Original content by Philip A. Raices 31RA0874656

I have been practicing and performing real estate for over 42 years. My first purchase was in 1977, a small home of about 1200 sq. ft that we resided in on North Road in the north section of Great Neck.

The second property we purchased was a 2-family on Steamboat Road in 1981.

Although we sold both properties and moved on to other investments, I can still remember how easy and simple it was back then, to be able to apply for a mortgage. Both were with Emigrant Savings and Loan, which is no longer in business.

Our second loan was completed mostly by phone (by house phone that is).

This is in stark comparison to “jumping through hoops” today with the massive amount of paperwork.  I imagine one day the lenders just might ask what brand of toilet paper that we use, LOL.  I guess they are just doing what they need to do to protect their loan.

However, where is our protection when a bank defaults or worse goes under?  Yes, I know, we are currently protected by the Federal Deposit Insurance Corporation for federally insured banks up to$250,000 per ownership category/account and per depositor.

However, one never knows if this situation could change in the future. There are many investments and categories that are not covered by the FDIC.

There are currently 4,600 FDIC-insured banks as of November 2023.

Online banking is extremely popular today.  Due to not having any brick-and-mortar locations, they can offer lower fees, higher interest rates, and other services, anytime and anywhere.

However, there are some drawbacks to banking online. However, if you bank online make sure that they are legitimate and are FDIC-insured.

Today, technology has reduced the amount of time and increased the efficiency not only in applying for a loan but in making it more seamless.

However, the applicant must be ready and willing to provide all the required and necessary paperwork to the lender that will show and prove the worthiness of the borrower in obtaining their loan.

Sometimes, it can be a bit more tedious as the banks may come back to ask for additional information.  Today, lenders can also verify with the IRS your income with a form 4606-C electronically sent to them to make sure what you reported is accurate.

With interest rates today, and home prices as high as they are, the banks are crossing the T’s and dotting the I’s to make sure their investment in your home will be paid back in a timely fashion.

Thirty years ago our access to real estate information came weekly via a printed and bound periodical that was delivered to all MLS offices.  By today’s standards this was like having a dial phone and the process was extremely slow.

Any additions of new listings and/or corrections had to be mailed in an envelope and hopefully were included in the updated book of real estate information.  We all waited with bated breath on Fridays to grab the book to see what new listings and changes occurred for the week.

It is hard to fathom the amount of work that we had to undergo to make appointments to show properties (remember, no email, no showing time applications, no internet).  Back then, the description and one black-and-white thumbnail photo were the only way to ascertain whether or not you wanted to show the home to your purchasers.

No one outside the Broker had access to the information.  The problem was, could you always trust the accuracy of the descriptions? Rules and regulations were not as strict as they are today. Also, there was much more inventory to choose from.

Forward to today, most information is available online for all to view. It’s not always 100% accurate, but between the information provided, e.g. diagrams, hi-resolution photos, videos and virtual tours one can surmise much easier whether or not one would have an interest in going to view the property.

We have come a long way from 30 years ago.  The transparency and completeness of the information provided truly assist the buyers as well as the sellers in describing the properties to create and maximize the marketing and exposure that will assist in finding a purchaser for the property.

Even with all the available technology and information, you still need a knowledgeable, qualified reliable Broker to view 95% of the properties for sale.

Sincerely,
Philip A. Raices, Pres, G.R.I. (Graduate Realtor Institute)
Turn Key Real Estate
7 Bond St
Great Neck N. Y.  11021-2414
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Comments (2)

Trish Cole
Veterans United Home Loans of Puget Sound NMLS#1907 - Puyallup, WA

The loan process has significantly evolved over the last 25 years I have been in the industry.  Today the protection is to the client as well as the bank.  Loan fraud is rampant and the two, three and more tier verifications are for protection of both, so that lending can continue for consumers.

Dec 01, 2023 12:08 PM
Charles Ross - eXp Realty LLC
eXp Realty LLC Salina Group - Salina, KS
Love To Help People

Excellent reblog.Thank you for sharing. Have a wonderful day and a blessed week.

Dec 01, 2023 08:08 PM