I received an email today from the President of one of the finest Mortgage Lenders in the greater Phoenix area. Following are a couple of his comments to me.

I need to make sure you and your clients are aware of a couple of things:

1. Loan level adjustments are stricter and will impact the rate and costs of a mortgage. Now, to get the best available rate on a generic 20% down purchase scenario, a borrower must have a qualifying FICO score of 740. From 740 on down, you have potential adjustments for every 20 points below 740 (i.e. from 720-739, 700-719, etc.) Additionally, loan to value (LTV) is a larger factor now in refinance transactions, especially in cash-out scenarios. So, the point I'm trying to make here is that it is imperative that if you have a client who is considering getting "off the fence" for a home purchase, they MUST do a prequalification to determine what they can qualify for and their best avaiable terms.
   
2. Underwriting guidelines are getting tougher, especially with appraisals. Lenders are now conducting appraisal reviews much more frequently than ever before. This can lead to appraised values getting cut as many reviews are conducted using a very conservative approach. So, in addition to changes in loan level adjustments to account for, appraisals are getting a high level of scrutiny. I would suggest that you assume EVERY property will have a reviewed appraisal. This is something I am taking into account with every loan I originate and I think it would be a good idea for you to consider as well, factoring it into things like length of escrow period (for potential delays due to reviews).

I actually feel that my friend was being WAY too diplomatic!

I am at this moment in the final stages of attempting to close a transaction with VA financing.

Escrow was opened on December 24,2008 with a contracted Closing Date of January 31, 2009.

Yes, VA loans are notoriously difficult, but this one has been an absolute nightmare from hell!

My client has great credit and substantial liquid assets, but feels like the person in the above photo.

The lender is Wells Fargo, the Loan Officer fell off the turnip truck just last week, and the underwriter's nickname is Satan! :)

Arizona Homes

Photo by The Prophet

See below News Flash by Inman News from this afternoon...

"A proposal to provide a $15,000 tax credit to homebuyers was stripped from a $789 billion economic stimulus package that appears headed for a vote Friday, but a restoration of higher loan limits for Fannie Mae, Freddie Mac and FHA loan guarantee programs appears to have made the cut."

"A proposal to provide a $15,000 tax credit to homebuyers was stripped from a $789 billion economic stimulus package that appears headed for a vote Friday, but a restoration of higher loan limits for Fannie Mae, Freddie Mac and FHA loan guarantee programs appears to have made the cut."

"A proposal to provide a $15,000 tax credit to homebuyers was stripped from a $789 billion economic stimulus package that appears headed for a vote Friday, but a restoration of higher loan limits for Fannie Mae, Freddie Mac and FHA loan guarantee programs appears to have made the cut."

Can anybody else relate to the person in this photo?

Photo by Ben Kokolas

PHOENIX continues to be one of the most popular cities in the United States!

January 2009

• 1,290 single family homes were purchased in Phoenix - compared to 461 in January 2008.

• The average price paid was $131,690 - compared to $294,347 in January 2008.

• The median price came in at $90,675 - compared to $193,870 in January 2008.

• The ratio of purchase price to list price was 96% - compared to 95% in January 2008.

• 996 of the homes (77%) were bank owned.

• The average time on the market was 78 days - compared with 103 days in January 2008.

• There were 13,847 Active single family listings - compared to 12,508 in January 2008.

Click Here for full current Phoenix Market Report

Homes in Phoenix, Arizona

Photo by Miguel Folch

QUEEN CREEK is indeed a community with great demand and incredible values in greater Phoeniz, Arizona!

January 2009

• 285 single family homes were purchased in Queen Creek - compared to 131 in January 2008.

• The average price paid was $132,925 - compared to $179,625 in January 2008.

• The median price came in at $112,000 - compared to $165,753 in January 2008.

• The ratio of purchase price to list price was 98% - compared to 95% in January 2008.

• 185 of the homes (65%) were bank owned.

• The average time on the market was 65 days - compared with 91 days in January 2008.

• There were 2,443 Active single family listings in January 2009 - compared to 2,715 in January 2008.

Click Here for full current Queen Creek Market Report

Homes in Queen Creek, Arizona

Photo by Miguel Folch

MESA continues with its long-standing reputation of being one of the most desirable communities in greater Phoenix!

January 2009

• 326 single family homes were purchased in Mesa - compared to 190 in January 2008.

• The average price paid was $169,466 - compared to $283,257 in January 2008.

• The median price came in at $139,950 - compared to $220,000 in January 2008.

• The ratio of purchase price to list price was 95% - compared to 96% in January 2008.

• 122 of the homes (37%) were bank owned.

• The average time on the market was 84 days - compared with 100 days in January 2008.

• There were 4,240 Active single family listings in January 2009 - compared to 4,363 in January 2008.

Click Here for full current Mesa Market Report

Homes in Mesa, Arizona

Photo by Miguel Folch