For most buyers the Mortgage market is healthy

The widespread notion that the entire mortgage market is in crisis is just plain wrong, say lenders in various parts of the country.
The following is an article from the Washington Post that talks about the overall impact of the mortgage market. It's conclusion is that high quality buyers are unaffected. In Steamboat we are fortunate to have both high quality buyers from a cash and credit standpoint along with limited supply. This along with how many things are working together to improve the experience in Steamboat over the next few years has kept the market here in Steamboat strong. When I talk to the local lenders I know I have found that they are still getting the approvals they need. Most have had 0 to 1 loans fall out since the national issues cropped up.

Give me a call if you you would more insights into this or the current market in Steamboat and the improving fundamentals and demographics that are driving our market. My number is 970-819-6930.

"The majority of mortgage products have been unaffected by troubles in the sub-prime segment. Interest rates for 30-year, fixed-rated loans remain in the low 6 percent range for people with reasonably good, though not necessarily perfect, credit records, according Kenneth R. Harney, managing director of the National Real Estate Development Center and syndicated columnist.

While there is plenty of money to lend, Harney says underwriting standards are more strict than they were a year ago. Jumbo loans, for example, often require two appraisals – one by an appraiser selected by the lender and the other by one working for the investor.

Similarly, FICO credit-score standards generally are higher than a year ago, stated-income mortgages with no verifications are hard to find and lenders are especially wary of excessive "layering of risk" – combining low down payments with marginal credit scores and high debt-to-income ratios – in markets where prices are trending lower.

Source: The Washington Post Writers Group, Kenneth R. Harney (09/29/07)
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