1+ I ^ n is Still True

Don’t let the headlines get to you; according to Data Quick, loan defaults are on the rise but only less than 1% of all mortgages in California are in default.

In my experience, headlines though current, typically aren’t area specific. Situations are often exaggerated or incorrect. In Marin County, there’s a rumor that jumbo loans aren’t available any more. Not true. Yes, there’s a tightening in the mortgage market, but it’s still possible to get loans, even jumbo loans.

For anyone considering purchasing a new home in the next 12 months, get pre-approved sooner rather than later. In today’s market you will usually need at least a 20% down payment, a 700+ credit score, and be able to document your income. A loan with 10% down payment is still available, but you will have to pay a higher interest rate. The same is true for a “stated income” loan, though you will need a 20-30% down payment and 720+ credit score. With a high credit score and a strong financial picture, buyers can take advantage of a wider array of loan options and lower interest rates.

Even if you are not presently in the market for a home, or a home loan, make sure that your credit score standing is 720 or more. A mortgage professional can help you calculate the numbers and create a good credit score strategy. Contact Sofia Nadjibi & Doris Le of Union Trust Mortgage, 415.464.2868, at www.CleanApproval.com for more information.

Partnering with an experienced, knowledgeable real estate agent can ensure that if you’re buying or selling a home, your transaction will close on time, with no surprises. Check out my website www.lifestylemarin.com to see what’s currently on the market throughout Marin.

Is Marin real estate currently—or going to be—adversely affected by what’s going on in the mortgage industry? Some of my buyers think it will result in lower prices for Marin estate properties. Others think that inventory of great homes—particularly those within desirable neighborhoods—is too low to affect prices, and still others think that instead of reductions, sellers will simply take their homes off the market. What do you think?

~ by DonnaGoldman on August 31, 2007.