Lender Rules Are A Revolving Door
According to Lawrence Yun, Chief Economist for the National Association of REALTORS, real estate sales in the US in 2010 were equal to the number of sales in 2000, yet the US population dropped by 27,000,000 since 2000. (2011, REALTOR magazine). As I wrote in my January newsletter, the Door County MLS reported a 5% increase in the number of reported sales in 2010 over 2009, however both years maintained 26% of properties listed for sale actually sold.
After 27 years in the real estate business and selling 60 to 100 properties a year in Door County, I'd like to think that there is not too much the I haven't seen. However, these last couple of years it has been hard to get a handle on lenders and their financing requirements. This is a revolving door of rules and regulations. If your credit score is 640 you might get a loan, but you are in a better position if your score is higher. Now, more than ever, it is vital that you speak with a local lender before you move forward with looking at real estate, even if you have cash for a big down payment. I recently had a well qualified buyer with cash to pay for a property he wanted to purchase. However, he wanted to financing the purchase. The offer was made, subject to financing (which we anticipated would happen fast due to his cash position), but on the last day, he was turned down! Even if you're "golden", have cash, and good credit, I strongly recommend....see a local lender first. When you're ready, call me first. I work with local lenders daily and can help you through the process.
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