Mortgage Rates Are at an All Time Low And Yes ! Banks are Still lending Money

By: Kevin Mullaney – Loan Officer – Aamtrust Mortgage, Burnt Hills NY

If you watch the news you are well aware of the financial difficulties that are facing this great nation. Many homeowners are facing foreclosure and some are having difficulty making their payments. Due to recent job cuts and layoffs this news is even more daunting. These times are very difficult for those of us in the real estate business and taxpayer alike. However, banks are still lending money on home purchases and refinances. And the greater majority of homeowners are paying their mortgages, selling their homes and refinancing.

The sub-prime mortgage crisis has deeply affected us all, either directly or indirectly. Nationwide banks have changed their underwriting guidelines to insulate themselves from risky-borrowers. The pendulum has swung and the market has shifted toward tighter regulations and guidelines. The good news is if you have good credit, steady income and you have saved some money for a down payment, you can qualify for a mortgage. Further buyers are in a unique position to purchase a home at a great price and get a very low interest rate.

The days of sub-prime loans are behind us and now lenders have created stricter regulations and the entire mortgage business has evolved accordingly. Since July, 1st of 2008 anyone who originates a loan for a broker must be authorized by the New York State Banking Department, this includes various back round checks performed by the F.B.I. and New York State Police. This type of regulation is needed in a profession that is so prone to fraud.

A mortgage broker’s role is to arrange a loan for their client but also advise them of the ramifications of doing so. If a client comes into our office here at Aamtrust mortgage and we feel they should continue to rent, we are bound by our duty to advise them to do so.

Since sub-prime loans are no longer available, buyers are opting for FHA loans. Again these newer guidelines are there to better protect borrowers and ensure they are truly credit worthy. For the real estate professional and potential home buyer, a close relationship with a mortgage broker is essential in this more difficult lending climate. It will save you a lot of time and take the guess work out of what you or your clients qualify for. Not to mention the potential pitfalls that may arise in the home buying process.

In conclusion, mortgage rates and housing prices are low and banks are still lending money. For those of us in the capital district home values are still holding strong. We are all looking forward to the Nano-Tech facility that is currently in development.

If you are a home buyer or seller remember that real estate is a local economy.

About Aamtrust Mortgage: We are a full service brokerage.

Convenional, FHA and VA loans. In house attorney, title and processing.

Make your next closing as stress free as possible. 518-256-7205