In the recent turmoil around bank failures, government relief packages and an extraordinarily erratic stock market, the words”tight credit” have been a regular part of media coverage. Unfortunately many potential buyers have assumed that those two dreaded words applied to them. Not so! Mortgage money is still available.
Our colleague, Rob Clark at Preferred Mortgage, offers this encouraging news:
1) Mortgage product is widely available. Preferred has sold loans to 21 different state and national investors and brokered loans to dozens of others.
2) Borrowers can still qualify for a loan. It is absolutely true that today’s underwriting standards are stricter than those of the recent past - a very good thing for the mortgage industry. Borrowers are now required to document their income, their assets, and prove that they are credit worthy. Old fashioned? Maybe. Prudent? Absolutely. A borrower with proper documentation and the appropriate income to loan ration will have no problem obtaining a loan.
3) Preferred Service Mortgage was never a major player in the sub-prime market. In 2005, at the height of the subprime frenzy, Preferred Service did just 3.5% loan volume in this category. This means Preferred is in an excellent position to take on the long anticipated upswing in the housing market.
Questions? Feel free to contact me at 703.548.0938 or Rob at 703.518.2814. We’re ready when you are.