What is the biggest challenge facing Realtors today when it comes to financing?

Answer 1

With interest rates averaging less than 4%, the lowest in history, this is the time to buy.  Buyer's lack of  confidence is more of a challange.

I've sold homes in the 1980's when home loans were 16% or more.  Thought that if the rates ever got under 12%, we would be selling right & left.  Now, at 4% or less, qualified Buyers are on the fence.

Now is the time to invest!  Home prices are starting to rise, according to NWMLS, and Realtors are seeing multiple offers on their listings.

Answer 2

There is no doubt that this is the time to buy. Home prices and mortgage rates are at historic lows. However, my question to the Realtors is in regards to the buyers already in play.

Aside from the fact that we would all like to see more buyers, where do Realtors find their biggest challenge when it comes to mortgage approvals?

Are the majority of declines due to down payment, low credit scores, bad credit or is it a lack of financial products to fit their needs?

Answer 3

Our realtors have lost deals because the property will not appraise for the sales price or the property is not in good enough conditon for a government loan (even though they are not as strict as they use to be).  With so many foreclosures on the market, they have a lot of times been vandalized before the homeowners move out, which makes them not qualify for government loans.  we do have the 203K program that they can go with to correct this issue, but they do not like having to have a higher interest rate than what they can get in today's market.

Answer 4

not being able to qualify, or the appraisal doesn't match what the person is able to borrow and not enough down payment.

Answer 5

The outcome of the appraisal.  Even if the REALTOR has done the homework - depending on the financing program the appraisal can come in low and the financing can not be obtained.

Answer 6

It is all about being prepared, prior to making an offer on a property.  Sit down with your mortgage lender, before looking at houses.

Find out what type of paperwork you will need and gather every single piece of documentation that you are asked for.

For the majority of my clients, when they do exactly what I tell them to do, getting a mortgage is not as hard as you might hear.  It is all about being prepared and working with people who have the experience you need in today's tight lending environment.