Interesting Facts and Quotes!
Sent out by the local Cape Cod and Islands MLS office, I saw these quotes and a couple reports on pricing and current lending issues consumers are dealing with, and thought is worth passing them on. While we are encouraged by the national ststistics, some articles bring back the reality of what is happening in the market for both sellers and buyers regarding lending issues.
"In this market, time is not your friend. List at the initial price for three weeks. If there have been no showings at all, drop the price 10%. If there have been showings but no offers, drop the price 4-6%" Linda Craft, Raleigh, N.C.
Lending facts...Nearly 1 in 3 borrowers who applied for a mortgage last year were denied. Overall, loan applications were down by a third from the previous year, and half the level of 2006. Fannie Mae has now directed lenders to obtain two sets of electronic transcripts for all borrows regardless of income sources, one at application, and one at closing. IRS form 4506T gives the lender authorization to get electronic transcripts from the IRS covering multiple years or your federal tax filings.
So while the market moves ahead, there still remains obstacles for buyers. There are solid intentions of the buyers to participate in the market, and they are reminded during the process that the guidelines have not softened, but continued to narrow the field of who can participate. Its frustrating for the buyers, and they learn to realize fast the process at the begining of the purchase is duplicated at the closing part of the process as banks continue to avoid any possibility of additional risk. Lets keep our fingers crossed the process will soften sooner than later, and allow more to remain in a sensible playing field where the banks want to attract business rather than turn it away.