MEMBER SPOTLIGHT!

Adam's apple

"healthy bites of information on

the real estate market" 

By Kimberly Adams,

Mortgage Broker

Although the real estate market has changed drastically in the last several months, I find the questions remain the same . . . Is this a good place to invest?  Can I afford a home?  What are current interest rates?

What has changed?

The market has seen vast changes in the types and terms of loans that are currently available.  The changes are affecting the sub-prime market (borrowers with little to no down payment and/or with low credit scores) the most.

Because investors who purchased sub-prime loans stopped purchasing them due to higher foreclosure rates, many lenders have stopped offering the programs.  And, as a result, many lenders that were in the business of providing these types of loans are now out of  business.  Their function was to package loans for re-sale.  When they were no longer able to re-sell, they packed their bags and called it quits!

Borrowers who have good credit scores have seen some program limitations as well; however, they are still able to get financing at market rates as long as they are able to fully verify income (from the same or similar source for the last 2 years) and show a reasonable amount of savings or other assets.  It gets a little trickier if these borrowers are unable or unwilling to verify income, but it can still be done in most cases, just with an add to the interest rate and/or fees to the lender.

Is this a good place to invest?

The real estate market in Oregon and Washington still provides a good return on the investment dollar, and our markets have not seen the reduction in prices that have plagued many markets such as California and Florida.  I believe that we are in for a correction through the end of the year, and possibly into 2008 – which makes it a great place for buyers.

Can I afford a home?

In the present market, many lenders are favoring borrowers who verify income and assets.  This means that lenders want you to qualify for a home.  They no longer trust borrowers simply for having good credit.

What are current interest rates?

Interest rates continue to keep borrowers in flux.  Will they go up?  Will they go down?  Interest rates are still the lowest our industry has seen over the last several years.  In the current climate with a possible recession looming and the Fed’s looking to stabilize the economy, interest rates could go down . . . or they could go up.  This is always the case!

What if I’m late on my payments or facing foreclosure?

Since the rug has been pulled out from under many folks who received sub-prime mortgages and have had difficulty maintaining their payments, foreclosure for many is a real possibility.

Federal and state banking regulators are asking lenders and investors to be more flexible when talking to borrowers with these loans.  Don’t hesitate to contact your mortgage service (where you send your loan payments) to see if they are able to renegotiate your loans terms.  (Lenders call this a “work out” or “loss mitigation”).

You can also try to sell your home before the foreclosure sale date.

JUST BEWARE OF FORECLOSURE “RESCUE” SCAMS!

Obtain more credit information

websites major credit bureaus at www.equifax.com,

 www.transunion.com, www.experian.com. 

Or 

For a free credit evaluation or loan qualification

Contact  Kimberly Adams

ADAMS Home Loans at 360-433-2466; toll free 877-436-2466!

Kimberly Adams is an innovative mortgage planner, committed to providing homeowners, future homeowners and investors with high level mortgage planning and

guiding them into informed decisions for their homes and finances.

Providing professional advice from over 20 years personal and professional experience,

Kimberly's goal is to give clients the tools to excel in an ever-changing marketplace.