Darren Schortgen, REALTOR Fort Wayne/New Haven, Indiana Homes

This post is being written in response to a post that I read in which the author felt that the NAR should not fight the proposed 20% down rule in the QRM.

For starters, people need to understand what got the housing industry in trouble, and be sure to pass out the blame where it deserves to be passed out. To begin with, the amount down payment has shown to have little to do with whether the mortgage gets repaid or not. For example, USDA and VA loans are ones which don't require a downpayment by the buyer, yet they are no more frequently defaulted on than conventional mortgages.

Why do homes get foreclosed? The simple answer is that they do so when the home owner cannot afford to repay the mortgage. In many cases, someone bought using an ARM(Adjustible Rate Mortgage), and after the mortgage rate increased, and in many cases doubled, the owner could no longer make the payments. In other cases, the person responsible for paying the mortgage lost the home after job loss, divorce, or a major expense like medical bills. In those 3 examples, the mortgage was unlikely to get paid whether they had put down 20% or not.

I've heard some people argue that maybe we should require higher downpayments on homes above the median home price in the area, so as not to penalize 1st time home buyers. While that may help in some cases, what about the doctor who just graduated medical school? I have sold homes to doctors without a downpayment, and I am yet to see one of them default on their mortgage.

The conclusion I have drawn on this issue can be summed up in very simple terms. It's not about the downpayment - it's about the ability to repay the mortgage!

If you are interested in receiving personalized service from a Fort Wayne Realtor who puts you first, give me a call, or send me an email. I am always there for both new and previous clients, both before and after the sale.

Darren Schortgen, Broker-Owner/REALTOR
Advanced Realty of Fort Wayne
(260)385-7603
Darren@DarrenSchortgen.com
www.DarrenSchortgen.com

I can't believe how often another Fort Wayne Realtor try to tell me that their listing has the best this, or the best that, in the neighborhood. Why can't my fellow Realtors understand that "the best" comes down to a matter of opinion. Let me give some examples.

I've had agents tell me that their listing has the best lot in the whole addition. As a matter of fact, I have had 4 different agents tell me this in the same addition that I was recently showing houses in. The interesting part is that the lots were all quite different from each other. One was heavily wooded. Another had no trees at all. One had a rolling terrain. Another had as level of a yard as you will find. Each of these might be the best lot to someone, however, none of these would be the best lot to everyone.

Floor plans are the same way. I have heard so many times about a house having the best floor plan. The thing is, the best floor plan is what works best for the potential buyer for the home. It's not a universal thing. Some people love split bedroom floor plans, while others like their bedrooms all near each other. When you throw in different styles of houses, which can often range from one to 3 levels, you can have all sorts of floor plans to choose from. And this extends to other rooms, too!

When it comes to Fort Wayne Real Estate, the best this, or the best that, comes down to what is best for you, the client. Your Fort Wayne Real Estate needs need the personalized service of a Fort Wayne Realtor who will work to find what is the best in your eyes.

The choice is easy, when it comes to your next Fort Wayne Real Estate sale or purchase. Hire the Fort Wayne Realtor who will look out for you. Hire me, Darren Schortgen.

Darren Schortgen, Broker-Owner/REALTOR
Advanced Realty of Fort Wayne
(260)385-7603
Darren@DarrenSchortgen.com
www.DarrenSchortgen.com