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12 months of credit crisis - Prequal, prequals, prequals - Heloc cutbacks

Helocs limits reviews. Some lenders are reviewing Heloc credit limits. In the face of declining real estate values and economic uncertainties this is understandable. Anybody who plans to take advances in the near future to a high overall loan to value may want to take the funds out now to prevent being surprised by a reduction in credit available.... Paul 

Long term rates flat
Freddie Mac the 30-year fixed averaged 6.52% with an average 0.7% for the week ending August 7 (but increased August 8), unchanged from last week when it averaged 6.52%. Last year at this time, the 30-year fixed averaged 6.59%. Freddy Mac rate surveys.
1-3 week trend: Up  21+ days: Up  Market commentary.

How the new First-Time Buyer Tax Credit works
Under the new housing bill, home buyers who have not owned a home in the last 3 years will be eligible for a tax credit. Find out if your buyers qualify.
 
Prequalify - Prequalify - Prequalify 
  • The buyer to set the expectations right, with confidence
  • The seller because s/he is usually a buyer as well 
  • The property if it is a condo. This is why 
     
    I am seeing more buyers who qualfied a short time ago, but no longer, this week a seller who cancelled a sale because he could not complete on his purchase (also increasingly more common). And I am seeing more condos that do not qualify for FHA or Fannie Mae financing, also a problem that can be prevented! Read about the condo financing problem.

    The first anniversay of the credit squeeze
    Monday was the first anniversary of the credit squeeze. It is unclear whether any one day can claim that dubious distinction, but
    August 2007 was certainly a cruel month. Read more

    Fed target rate stays at 2.00% 
    The Federal Reserve announced Tuesday that it would hold the Fed funds target rate at 2.00%, as was widely expected. Read more.
    _________________________ 
    Counsel woven into the fabric of real life is wisdom.
    (Walter Benjamin    )

     

    Posted Monday Aug 11