805 Local

I hear it on television and the radio, and people are calling me with the same question, “Are you guys still lending money?”  Really?  That’s the question?  Yes, and I’ve even seen it on the news where the “talking heads” are saying that banks aren’t lending money on real estate right now.  It’s happened too many times this week to not mention it.  So here I go…

Banks are lending money!  Okay, there, I said it.  Have the guidelines changed?  Yes, they have, but not to the point where you can’t get a loan if you’ve got decent credit and some money to put down.  100% financing is all but gone, but since it is my business, I’ll tell you that loans are still being funded and closed.

Want to buy a new home?  Got terrible credit?  Have no money at all for a down payment?  Relatives won’t kick in to help you?  Then you’ll probably have to wait a while for the market to come back to you.  In the meantime, I would suggest saving for a down payment (if you can) and keeping your credit as clean as possible.  Remember that credit scores are based on “What have you done for me lately?”.  If you have an unpaid outstanding collection, that collecton is still considered current bad credit even if it’s years old.  Try to distance yourself (time-wise) from any late payments as well.  The further away they are, the less they matter today.

Let’s try that again.  Want to buy a new home?  Have average credit?  Have at least 3.5% down (FHA)?  Maybe even 10% down?  You can probably buy a home.  The only real question is how much home can you buy.  The bottom line is that lenders are lending to qualified borrowers and if your interested to know exactly how much you qualify for, call your favorite lender, which by now should probably be me.  Talk to you soon!