Is the residential real estate market taking a knockout blow?
WSJ.com reported that borrowing conditions have tightened at this stage of the real estate cycle. Economists are worried that the housing market might turn down again because of tight borrowing conditions. Home lenders are more conservative because the GSE’s (Freddie and Fannie) are threatening to force banks to take back bad home loans. It is becoming a downward spiral.
What can you do if you want to refinance your mortgage or buy a new home?
- Find a trusted borrowing advocate to help coach you through the decision to borrow money. If you decide to borrow the advocate can show you how to maximize borrowing to your advantage and minimize borrowing risk.
- Don’t make the five deadly borrowing mistakes including overestimating your future cash flow available to make the new loan payments.
- Remember that your home is consumption of shelter and don’t make borrowing decisions as if it’s an investment.
- Avoid financial rabbit trails by clearly defining your commitments and borrowing within those boundaries.
- Remember, the borrowing decisions you make today will impact your financial legacy for future generations of loved ones and people you don’t even know today.[money walk]
Mortgage credit is tight but you can do things that will improve your chances to land the right loan for you and your home.
Are you having a hard time borrowing money today? What borrowing conditions are you facing?
- Fannie, Freddie Pressed on Mortgages (online.wsj.com)
- Differences Between Freddie Mac and Fannie Mae & Rules (brighthub.com)