Yes, mortgage money available
– from one of our favorite mortgage voices, David Reed, CD Reed Mortgage Bankers, Austin
True, and funny, story.
I was at a baseball practice with one of my boys, we were both sitting on the dugout bench when a client called. It was a referral and they wanted some mortgage information and as part of my standard “Q&A” I asked, “So, how much money do you want to borrow?” I went through a few more questions and eventually the call ended.
My son looked up at me and said, “Dad, if you’d stop loaning everybody our money we’d be RICH by now!”
Can You Do Me a Favor?
Can you let your clients know that yes, there is mortgage money available?
I was on a conference call last week with a client who lives in South Texas and the Realtor (whom I actually referred the initial deal to).
The buyers asked me, again, what kind of loan this was (FHA), is the interest rate fixed (it was) and is there any prepayment penalty (of course not).
Then the next question, one that is understandably more common: “Is there any money available and can you still make this loan?”
The answer is still: “Yes.”
You can understand where this doubt comes from, after all it’s all over the news that “banks aren’t lending any money.” And that’s generally true in many instances but it doesn’t apply to mortgages. At least in the conventional and government playbook.
As long as the buyers can document their income, have decent credit and have some down payment then mortgage loans are being made every day. I know that for a fact; just got back from a closing on Friday.
It’s impossible to ignore the financial roils in the marketplace but we need to be just as aggressive in making sure our clients know that it’s okay to buy a home and get a mortgage. Especially in this current interest rate market. And one doesn’t need to be Donald Trump (before the bankruptcy) in order to obtain a home loan.
One thing that’s vitally important these days is to make sure your clients are working with someone they know and trust, have been approved by their mortgage lender and understand that credit is indeed being issued each and every day.
What we don’t want to happen is to have the Associated Press affect our pipeline. Hard to do sometimes I’ll agree, but let it be known far and wide that mortgage lending is still alive and well.