Happy Friday,

The House of Representatives passed the “investment in America” today which should help the banks ease up on credit when lending to one another and other businesses. Please look at this as an investment in America as the government has the ability to MAKE money in this scenario and their guaranty of loans helps to restore confidence in our marketplace.

It is disappointing to hear the constant negativity that the media has hit us with these past three weeks. I have CNBC on for approximately 14 hours per day in my office and home to keep abreast of the financial markets throughout the world. During the past two weeks the press has made it out to be financial Armageddon. In reality, the mortgage markets are moving along with business as usual. Rates are great, the programs are still available (yes even stated income for low loan to values and high FICO’s) and we are closing mortgages every day. With rates under 6% fixed, it is a super time to buy a home. Great inventory, motivated sellers and great rates; what more can a buyer ask for?

One more item for discussion this week. We have had a few contracts recently that show the property being sold by the bank “As Is”. In reality, unless the buyer is paying cash, there is no such thing. The new lender requires that there are no health and safety hazards and that all appliances, windows and cabinets are in place. This does not include refrigerator and washer/dryers. Several homes have had showers that were half built, no dishwashers are garbage disposals and no stoves in place. The new lender WILL NOT close escrow on a hold back in this situation or any type of credit to the buyer. If the appraiser mentions any of these items they will have to be installed and inspected by the appraiser prior to closing.

I understand this is a catch 22 and creates unique problems in some cases, but either way, they will be complete prior to a new loan funding. We have had some successful closings with these types of situations recently so please call me with any specifics and we can discuss them.

It really is a great buyers market out there right now and we just need to share the opportunities that are available to our clients. Let me know if we can help you in any way.