How does the takeover of the two biggest Mortgage Lenders affect Miami Real Estate Sellers and Buyers…?
September 7, 2008 wasn’t just a day we prepare for Hurricane Ike many of us put hurricanes shutters, went grocery shopping and others watched the Miami Dolphins play their first game. Sunday was a day of Mortgage history two of the biggest Mortgage Lenders that underwritten about 5.3 trillion dollars of the mortgage debt in the United States went under federal control. The two mortgage giants are now going to be overlook and operated by our federal government it is in a state of “conservatorship” said Henry Paulson secretary of the Federal Reserve. This wasn’t such a big surprise after Bear sterns, Indy Mac and countrywide were early victims in the Mortgage fall out this year. The financial report that ended this August showed a combined lost over 3 billion dollars. This would have been enough for investors to plan an exodus from their financial stocks. The big question is how does the take over from this two huge mortgage lenders affect Miami Real Estate sellers and buyers? Miami Real Estate home buyers and Sellers have experienced tight lending standards which make it more difficult to qualify for a buyer to purchase and harder for a seller to sale. Credit scores, increased fees, higher down payments and eliminating seller contribution as been the biggest changes the mortgage market has made.
The takeover of these two mortgage giants can affect directly any buyer in today’s mortgage market. This financial move will tighten up standards even more. Credit scores has been one of the major changes made in the industry as far as qualifications. If you take a look over 2 years ago credit scores were accepted anywhere from the 600-620 now in today’s mortgage market 700 would be the common required credit score, This will narrow the list of qualified Miami Real Estate buyers .
Will mortgage fees continue to rise?
“The mortgage titans have also increased their fees in hopes of shoring up their finances. Just last month, Fannie Mae announced higher surcharges for loans to weaker borrowers. For instance, applicants with credit scores between 640 and 659 who are putting down 15% to 20% will pay an additional 2.25% charge.” Click here to read more on Fannie Mae and Freddie Mac
“The same borrower would pay 1.7 percentage points more because of higher fees and rates for the same loan today as he or she would have paid 18 months ago, LaMalfa said.”
If you are looking into purchasing please prepare yourself for higher down payment. President George Bush particularly signed a law that would eliminate any seller concession and contributions that seller made to incite buyers in the past. Do you remember reading such words “seller will contribute 6 percent of buyers closing cost” or “No closing cost required” that was very popular the last 5 years when prices were soaring.
If you are a buyer and have financing problems or questions please click on this link and contact us we can help you and guide through your questions.
Read also
Ready to move to Miami? We have several Miami Homes, Miami Foreclosures, Miami Rentals, Miami luxury foreclosures, Miami Condo foreclosures. Search the Local MLS for Hundreds of Miami Homes and Miami Real Estate. Please contact us for a list Miami homes.
How does the takeover of the two biggest Mortgage Lenders affect Miami Real Estate Sellers and Buyers…?
September 7, 2008 wasn’t just a day we prepare for Hurricane Ike many of us put hurricanes shutters, went grocery shopping and others watched the Miami Dolphins play their first game. Sunday was a day of Mortgage history two of the biggest Mortgage Lenders that underwritten about 5.3 trillion dollars of the mortgage debt in the United States went under federal control. The two mortgage giants are now going to be overlook and operated by our federal government it is in a state of “conservatorship” said Henry Paulson secretary of the Federal Reserve. This wasn’t such a big surprise after Bear sterns, Indy Mac and countrywide were early victims in the Mortgage fall out this year. The financial report that ended this August showed a combined lost over 3 billion dollars. This would have been enough for investors to plan an exodus from their financial stocks. The big question is how does the take over from this two huge mortgage lenders affect Miami Real Estate sellers and buyers? Miami Real Estate home buyers and Sellers have experienced tight lending standards which make it more difficult to qualify for a buyer to purchase and harder for a seller to sale. Credit scores, increased fees, higher down payments and eliminating seller contribution as been the biggest changes the mortgage market has made.
The takeover of these two mortgage giants can affect directly any buyer in today’s mortgage market. This financial move will tighten up standards even more. Credit scores has been one of the major changes made in the industry as far as qualifications. If you take a look over 2 years ago credit scores were accepted anywhere from the 600-620 now in today’s mortgage market 700 would be the common required credit score, This will narrow the list of qualified Miami Real Estate buyers .
Will mortgage fees continue to rise?
“The mortgage titans have also increased their fees in hopes of shoring up their finances. Just last month, Fannie Mae announced higher surcharges for loans to weaker borrowers. For instance, applicants with credit scores between 640 and 659 who are putting down 15% to 20% will pay an additional 2.25% charge.” Click here to read more on Fannie Mae and Freddie Mac
“The same borrower would pay 1.7 percentage points more because of higher fees and rates for the same loan today as he or she would have paid 18 months ago, LaMalfa said.”
If you are looking into purchasing please prepare yourself for higher down payment. President George Bush particularly signed a law that would eliminate any seller concession and contributions that seller made to incite buyers in the past. Do you remember reading such words “seller will contribute 6 percent of buyers closing cost” or “No closing cost required” that was very popular the last 5 years when prices were soaring.
If you are a buyer and have financing problems or questions please click on this link and contact us we can help you and guide through your questions.
Read also
Ready to move to Miami? We have several Miami Homes, Miami Foreclosures, Miami Rentals, Miami luxury foreclosures, Miami Condo foreclosures. Search the Local MLS for Hundreds of Miami Homes and Miami Real Estate. Please contact us for a list Miami homes.