If you don't know already, the conforming loan limit is being set back to the previous level of $625,000 from the current $729,750 amount for any property that doesn't close by December 31st, 2008. Are you aware of the major impact of this? If you have a buyer in this range who is diddling around need to get into contract quickly since we are coming on end of the year quickly.
In many markets, this is big time house but in many urban areas, including most of california, this is entry level house in many areas. So, this will impact thousands of agents and their clients.But, there are two things you can do.
1. Call your buyers and let them know that any loan commitment that have may go away after Dec. 31, st and how much harder it will be to get a jumbo loan .......and who knows at what rate.
2. Contact your congress person and ask that the limit be extended. This is especially important in markets where this is a very expensive house. Most people wouldn't care if RICH PEOPLE got a decent rate, but in those markets where it matters where it is needed, it is critical. Also, you might mention that they might want to index it to the market area, which is the right solution ........which means that the government will never consider it.
For those of you in lesser priced home markets, here is a couple of examples of what I am talking about:
1. 1200 SF 50+ yr old fixer upper: Put in MLS# 80829853
2. 1200 SF, flattop no garage: Put in MLS# 80844857
We need your help, not matter what market you are in.