Miami County Real Estate

Daily Real Estate News | Monday, July 28, 2014

Demand for mortgages rose during the second quarter, but a strong divergence between larger and smaller lenders in underwriting credit standards is appearing, according to Fannie Mae’s Mortgage Lender Sentiment Survey, which tracks current lending activities and market expectations among senior mortgage executives.

Mortgage executives say it’s difficult for consumers to get a mortgage today, but some lenders are tightening their standards more than others. The Fannie Mae survey found that smaller and mid-size lenders are more likely than larger lenders to say their credit standards tightened over the prior three months. These lenders also report that they’re more likely to tighten them even more during the next three months.

On the other hand, larger lenders were more likely to report that they have eased their credit standards over the prior three months and that they expect to ease standards more during the next three months.

The most common reason cited for tightening credit standards among all the lenders surveyed was the “changing regulatory requirements,” according to the survey.

“Lenders have been trying to find ways to manage their operational costs and meet new regulatory rules,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “They appear to feel cost constrained and, thus, may be applying more conservative standards in their lending practices.”

Still, overall, lenders reported positive expectations for mortgage demand throughout the remainder of the year, although they expect growth to remain modest.

“These results are broadly in line with other major indicators released recently, including the pickup in home sales in May, and also support our expectations of a steady but unspectacular rebound for housing during the second half of this year,” says Duncan.

Source: Fannie Mae



Here’s a look at four messages and mindsets buyers should avoid broadcasting.

1. “I’m Not Pre-Approved”

Prospective homebuyers who shop for homes before getting pre-approved can put themselves at a disadvantage from the outset.

Real estate agents and home sellers prefer strong buying candidates who are likely to make good on their purchase offer. Agents and sellers will often want to see a copy of your pre-approval letter alongside your offer. A pre-approval letter signals that a potential buyer has the credit, income and assets necessary to stir confidence in a mortgage lender.

[Ready to get a home loan? Click to compare interest rates from multiple lenders now.]

A homebuyer without that confidence is a total wildcard. There are no guarantees when it comes to pre-approval and purchase offers, but the buyer who looks like a better bet will often reap the rewards, especially if there are competing offers.

2. “I’m Pre-Approved for This Exact Amount”

That pre-approval letter is a critical document. But what exactly it details is also incredibly important.

Homebuyers can shop with more certainty when they know how much a lender is willing to extend. But that ceiling isn’t a figure that sellers need to know. In fact, you can squander goodwill and compromise your negotiating position by including a pre-approval letter for more than your offer.

Market and specific property notwithstanding, buyers will often make a first offer below the list price. Put yourself in the seller’s shoes: Imagine getting an offer at or below your $150,000 list price from a buyer who’s been pre-approved for $250,000. You’re practically begging the seller to push back hard.

Instead, submit a pre-approval letter that matches the amount of your offer, or refrain entirely from using a dollar amount. Lenders can tailor these for specific properties and amounts up to your max. There’s little benefit to telling sellers you can pay more than you’re offering.

3. “I Can’t Live Without This Home”

Falling in love is easy when you’re shopping for homes. But fixating on one and only one property is likely to hurt your chances of landing a good deal. It’s not even so much a concern about sellers or their agents catching wind (although that’s certainly a reason to stay silent if you’re touring homes when a seller or listing agent is present).

[Want to save on your mortgage? Click to compare interest rates from multiple lenders now.]

It’s more that being inflexible is bad for business. Buyers who say they “must” have a certain home can have a tougher time being objective. That can lead to big-time imbalance at the negotiating table.

4. “This Is My Forever Home”

This is a sweet sentiment, and you very well may intend to spend the rest of your life in your new home. But lives, circumstances and finances all change. People get divorced or lose their jobs.

Only about a quarter of homebuyers in 2013 planned to stay in their home for at least 16 years, according to the National Association of Realtors. More than four in 10 said they didn’t know their expected tenure.

Resale should always be a consideration regardless of your best intentions. A day may come when you have to put your forever home back on the market.

Keep this in mind with unique properties or homes with uncommon features, which could become hurdles down the road.

[Editor’s Note: Before you buy a home, it’s important to know where your credit stands. You can check two of your credit scores for free every month on]

Stonebridge Community Church and Cyndie Soctt & Associates will be partnering to host a communiy Easter Egg unt.The hunt will take place on the lwn at Mote Park, Saturday April 19, 2014. The hunt will start @ 11:00 a.m. and besaggered by age groups. This free event is open to all children 12 and under. Registration and pre-hunt fun starts at 9:45. All children must be accompanied by an adult, An “EGGcellecnt” time is to be had by all.

If you liked thepreviously announced national HOMEBUYER TAX CREDIT program for first time buyers~~ which includes anyone who hasn’t owned a home (primary residence) in the past 3 years ~how about enhancing the program to the next degree! Call ia a “potential double opportunity” WOW!!!

Buyers who close on a home purchses in OHIO aftere March 23, 2009 may be able to add this benefit to home affordaility~The Ohio Mortgage Credit Certificate (MCC) program. But ist’s limited to the firt (approx) 1000 homebuyers in OHIO who take advantage of this program That could last 2-3 months or longer First come Fisst Serve.

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