If we can't convince you to buy a home, we'll scare you into it.
Ten Ways To Accelerate Your Mortgage Application
The Feds are out to corral lenders they say are making too many risky loans and the recent bridle on rising mortgage rates likely will only temporarily reign in the trend of higher mortgage interest rates.
You may have some time yet before lenders withdraw some risky loans or tighten underwriting rules, but not much. Meanwhile, mortgage rates can and do turn on a dime -- and that can cost you.
Such volatility in the mortgage market behooves you to speed your mortgage application through the pipeline. The faster you get your loan approved, the better shot you'll have at the home you want.
Other Fed actions, including the Federal Reserve's ratcheting up benchmark interest rates, likely will pressure mortgage rates to resume their rise if not until spring buying ensues. Last year, mortgage market monitors predicted rates would be at or above 6.5 percent by now.
The best way to deal with so much uncertainty in the mortgage market is the fast way.
Translation:
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Hey, Mr. No Money Bankrupt Credit Risk. Didn't you hear the gubment wants to take away the easy money? You know that nobody on gods good earth is going to give you a dollar when this thing is over, so you better do your gettin' while the gettin' is good.
C'mon now. Hurry it up. It's your last chance. The door is closing on you. Once the "Fed" tightens the reigns you'll never own a home. Come on. Why are you still here? Get out there and buy a home now or you'll never own one.
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The article ends with the obligatory "mortgage how-to" in an attempt to instill credibility into a piece that is clearly nothing more than scare-tactic propaganda. Just keep reading this piece over and over. Pay close attention to the wording and tone being used..
"The feds are out to corral lenders ..."
"... that they say are making too many risky loans"
"You may have some time yet ..."
"... the better shot you'll have at the home you want"
"Little more than a month remains. "
"The best way ... is the fast way"
Caveat Emptor,
Grim
12 Comments:
Last year I was with a realtor that was showing me a couple houses I was interested in, and I mentioned that I really was thinking I would wait until the spring, so we could make sure my husband still had a job. She was totally serious when she said when should buy a house right away while he still did so we could get a mortgage. I was really baffled on how she thought we would pay the mortgage if one of us became unemployed or why we would even stick around here if that happened.
In order to understand why she said what she did, you need to translate it into what she heard.
Which was:
"blah blah blah blah, you'll need to wait until spring before you even have a chance at seeing a commission. blah blah blah blah"
grim
Grim:
Even withstanding the Feds clampdown on mortgage practices, the originating banks themselves have reason to ratchet down the risk profile of loans.
At the highest level, consumer banks make money by borrowing short (bank deposits) and lending long (mortgages, long-term loans). Now that there is significant spread compression on their cost of borrowing versus lending (i.e. flat yield curve), they would find a person with a questionable credit profile a much less alluring customer.
Whereas in the past they were making so much profit per customer that they couldn't have cared less whether a few blew up on them, it is less attractive now. Another slowdown is in Banks' ability to lay-off risk by selling loans (e.g., Fannie Mae). This market is also slowing down.
The upshot is a least when you will eventually have interest a future property, you shouldn't be crowded out by a bunch of "yahoos" playing with "Monopoly money". These clowns will be eradicated off the streets.
LOL!
Realtors make commisssions. No sales NO commissions.
Buyers are used and abused.
First time buyers beware of others telling you just to payup. Don't do it. It will be a mistake you will live to regret.
well i have to say i could feel the fear.
i want to an open house and the house was in a nice area but not worth the money they were asking and the realtor at the house was telling me
" we see that values will continue to increase but not at the same rate"
oh boy wrong thing to say....
after laying into her with facts and figures her eyes glassed over, and i ended with,
"how can you tell me that prices will increase?"
CDF
Lack of regulation allows the re industry to spew out propaganda fearlessly.
This is going to change dramatically in the future.
I think my new job is going to be buying homes from people about to foreclose.
There will be alot of homes available in Southern and Western NJ.
Also, who is going to get stuck with the debt? In other words, who is exposed due to these bad loans?
Is it the hedge funds who buy these CDO's?
Fannie Mae
that means the taxpayer will pay :(
I've heard some very good arguments both ways.. So we'll just have to wait to see how the Fannie/Freddie issue plays out.
I think Greenspan is going to get significantly more vocal on this and many other issues after he leaves the Fed.
grim
Patience is the key word here
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