Last month, on average, only about half of all the people that applied for a mortgage actually got approved for one. Just to show that getting a house these days is the easy part, it's getting a mortgage that is the tuff past, or at least it was. Even when you have to sell a home in places in and around the Kissimmee St. Cloud corridor of Central Florida, where you can now buy a home for between $40K and $150K. People were not qualifying for a mortgage. I can't blame the banks; they simply don't want what happened in 04-06 to happen again. Here in Florida we lead the nation in increases of property values during that time. Even in my community, prices of the new homes were going up an average of $10K a month. So of course, it's only natural that Florida leads the nation in decreases today. Between 04 and 06 in some areas of Central and South Florida we had over 100% appreciation in home values. Today in most areas it has been between a 40% to 60% drop in values. Now of course there are three states that have beaten our numbers some months in 2010, but it's not a record that I think anyone really wants top prize for.
Yesterday morning (1/15/11) an announcement came in from our mortgage rep. Colleen Mitchell that Wells Fargo has revamped their Mortgage Policy. When all other banks are raising their mortgage approval guidelines, Wells went the other way. Stupid move, hell no! Even if only half of the people that could not get a mortgage before applied again and got approved, Wells wins. Not only will Wells win but everyone wins. Think about it, we can sell more homes and get the economy moving again.
We know this has had an effect on business already, because the announcement came mid-morning and by 1pm showing requests on at least a dozen of my listings had multiple requests. And half of the teams' listings had the same.
Finally we have something with a positive effect on business in general. Personally I'm jazzed that this will help all around business and especially those people that have under a 600 credit score that can really buy a home. Yes you read that right, under a 600 credit score. Hey, stuff happens we know it does. I had someone that was approved for a mortgage and was ready to close. The bank ran the credit the week before closing and because she paid a credit card bill one day late she could not qualify anymore. With the Wells new guidelines she would be in that house, if it happened now. There are still some caveats that you will have to talk with your Wells rep about. If you don't have a Wells rep, call Colleen Mitchell. Not only will you be happy you did but so will your clients.
Happy Selling
Paul Antonelli
www.ThatShortSAleGuy.com
Host of www.CentralFloridaRealEstateShow.com
Yesterday morning (1/15/11) an announcement came in from our mortgage rep. Colleen Mitchell that Wells Fargo has revamped their Mortgage Policy. When all other banks are raising their mortgage approval guidelines, Wells went the other way. Stupid move, hell no! Even if only half of the people that could not get a mortgage before applied again and got approved, Wells wins. Not only will Wells win but everyone wins. Think about it, we can sell more homes and get the economy moving again.
We know this has had an effect on business already, because the announcement came mid-morning and by 1pm showing requests on at least a dozen of my listings had multiple requests. And half of the teams' listings had the same.
Finally we have something with a positive effect on business in general. Personally I'm jazzed that this will help all around business and especially those people that have under a 600 credit score that can really buy a home. Yes you read that right, under a 600 credit score. Hey, stuff happens we know it does. I had someone that was approved for a mortgage and was ready to close. The bank ran the credit the week before closing and because she paid a credit card bill one day late she could not qualify anymore. With the Wells new guidelines she would be in that house, if it happened now. There are still some caveats that you will have to talk with your Wells rep about. If you don't have a Wells rep, call Colleen Mitchell. Not only will you be happy you did but so will your clients.
Happy Selling
Paul Antonelli
www.ThatShortSAleGuy.com
Host of www.CentralFloridaRealEstateShow.com
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