Are Banks Still Lending Money to Homebuyers?

Laurie Laudin with Kennedy Capital states she frequently encounters this question. Many prospective buyers fear that banks have stopped lending money in our post-mortgage crisis economy.

According to Laurie, the answer is “yes.”

Actually, due to the combination of reduced housing prices and low interest rates, loans are being made. The real issue at hand is not whether banks are lending, but how to be a prepared buyer.

In our current mortgage atmosphere, knowledge and preparation equal power. Knowledge entails having a mortgage resource that is well versed re: our continual mortgage industry changes and new regulations and who is able to identify potential weaknesses in your mortgage profile far in advance so that necessary preparation can be made to minimize pitfalls and expedite the financing process once you enter escrow.

Preparation entails having a mortgage resource that assists you in exploring your financing options and getting yourself approved for a loan far in advance of purchase. Laurie  recommends that serious shoppers begin the mortgage pre-approval process at least 2-3 months before they hope to purchase.

It is also imperative for those who intend to sell their homes in this season to have a listing agent who is aware of the current HVCC (Home Valuation Code of Conduct) laws re: appraisals, because appraisals are now being executed by third-party vendors who may not be local to the area. Therefore, it is important that both the listing and selling agent have accurately reviewed market comparables and are able to determine value appropriately and communicate as such to the appraiser.

Kennedy Capital is a premier brokerage local to the Pasadena, Sierra Madre, and surrounding areas for the past 15 years. If you are seeking a mortgage pre-approval and financing, contact Laurie Lundin at Kennedy Capital (626.825.6173, LLundin@kennedycorp.com).