HOME LOANS; The Modern American Gulag
July 5, 2011 by Gail Boston · Leave a Comment
Home Loans; The Modern American Gulag
When I visited the market near Red Square in Moscow years ago, fantastically long lines were queued up for meager supplies. Most shelves were empty of goods. I realized the ancient old man at the shank of the line for ladies’ bras couldn’t possibly know what he was waiting for. His desperate strategy was to join any line; with the hope there might be something to buy and perhaps barter. Right now, as a Realtor, the home loan market has the same waiting –and not knowing quality.
Well qualified buyers are getting rejected at the 11th hour by out-of-state investors who don’t appreciate Austin. Austin is a real estate success story that doesn’t translate necessarily in New Jersey. The onerous appraisal process is just one element of a corrective pendulum swung too far. It’s further complicated by the fact that real estate isn’t a product per se. There are babies, pets, movers, contractors, school starts, work etc. that make this extraordinary life change exceedingly time sensitive. The typical contract-to-close length is 45 days now. And yet, two major banks have an average turnaround of 105 days to fund a loan. That’s quite a gap. What do people do when flexibility online casinos isn’t part of the equation?
On a macro level, the housing market recovery is a core piece of our economic lift, and yet loans are ever more difficult for those with excellent credit and the resources to purchase a home. That leaves us in a Catch 22. If pending legislation requires 20% down for mortgages and over 80% of all loans are funded with less than 20% down, what’s going to happen? Will cash or seller financed transactions become the norm?
The question is: Do buyers pay perhaps a slight premium and only use loan officers with local underwriters and investors for loans? I think so. When it comes to peoples’ lives, I’d advise going very local. It’s a crucial buyer decision which will add a level of control to a big life change.
By Gail Boston, Realtor West Austin Properties
Gail Boston Knows Austin
CLHMS, Million Dollar Guild, ABR, E-Pro Real Estate Internet Professional, Member Institute for Luxury Home Marketing
After growing up locally in Tarrytown and later living in Vienna, London and New York, Gail Boston came back to her favorite place in the world: Austin.
This Austin native and former publisher of Buying, Selling & Owning YOUR HOME will go the extra mile to facilitate every phase of your real estate needs. Whether it’s your primary residence or an investment property, Gail is your “go to” real estate expert. Through partnering and her global and local network of experts, she will guide you through the process with professionalism, attention to detail and knowledge.
Knowledge + focus + energy = results
Her knowledge, focus and energy get results. She has earned a reputation as one of Austin’s most dynamic real estate professionals; successfully serving home buyers and sellers as well as investors and business professionals. Gail has expertise in luxury residential and waterfront, Eanes School district homes, creative commercial spaces, land acquisition and conservation, and the downtown condo market.
Gail is deeply committed to the Austin community and the philosophy of sustainability. She volunteers with Red Cross, Green Gate Farms, Cherrywood Art Fair, Greater Austin Chapter of Families with Children from China, Woodland Reach and more. She enjoys living in West Lake Hills with her husband, daughter and two dachshunds. Besides family, her interests include native plant gardening, hiking, opera, kayaking, fly fishing, cooking, reading and travel.
Contact Gail @ gail@westaustin.com or 512-626-5348
