Loans Still Available

Monday, November 03, 2008

Recent news reported that in the aftermath of near-death to Fannie and Freddy, there are still a plethora of conforming loan products available.  A potential home buyer is still going to have to demonstrate a solid income history and good credit score (perhaps more now than ever) but mortgages are still available.

This is important news as we move into the upcoming ski season in Steamboat.  With the snow comes an onslaught of potential buyers to our valley and there have to be lender options if these investors will translate into sales.  What’s not to love about Steamboat in the wintertime?  I’m working very hard to make sure my listings are primed and ready to show once the planes start touching down, in an effort to capitalize on primary and secondary home purchases.

The caveat with this however is that rates are fluctuating more now than we’ve seen in the past.  Mike Larson, vice president of Mountain Valley Bank (a local lender) reports that rates on comparable loans may fluctuate as many as 3 times a day.  Now prospective buyers who are “shopping” for rates need not only compare rates of different lenders, but compare the time of day the quotes were received.  With a fluctuating scale such as the one we’re seeing now, this is the only way to insure an “apples to apples” comparison.

Keep in mind that non-conforming and jumbo mortgages are still going to be tricky. Considering that many transactions in our area fall outside of a conforming “primary residence” type loan package, we’re still bracing for slower times ahead.  But the mere fact that loans are becoming more available and credit is beginning to loosen once again, there seems to be a shimmer of hope of good things to come.

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