Tracy's Credit Tip of the Month | Mt Kisco Real Estate

-
Tracy's Credit Tip of the Month
Wells Fargo gears towards the subprime mortgage market. What does that mean for home buyers, realtors, bankers, and other finance professionals?
With the refinance boom coming to an end and banks looking to find new ways to increase profits subprime loans are becoming a new focus. Wells Fargo, the mortgage leader, will now embrace subprime loans, which means other banks are sure to follow. In the past Wells Fargo would not even entertain a loan if the FICO score was less than 640 but now they are looking at scores of 600 and up. Due to a loss in profits of the dwindling refinance market banks are beginning to lean towards business lending and subprime loans.
How will this impact those looking to purchase real estate? There are many individuals who have not been able to qualify for a loan in the past 3 or more years due to a loss of income and poor credit scores. Most mortgage banks were not interested in working with these individuals but now consumers may have a better chance to become homeowners and get approval on a mortgage. Real estate agents may find more buyers coming into the market for purchases due to this move to subprime loans. The detriment of these loans is that they can be costlier due to higher interest rates and fees in response to higher risk.
Those that may now be able to afford these loans and enjoy home ownership can also work towards better choices and lower costs down the road. Once a lender closes on a subprime loan the borrower should begin improving credit by working with a professional credit restoration company as well as learning how to build good credit. Once the borrower's credit standing has improved they can become a candidate for a refinance which will reduce the interest rate and cost of the loan. The borrower, realtor, and the mortgage banker all win in this situation since the borrower gains a property and the opportunity to save in interest once a refinance occurs. The realtor makes a sale and the banker has the potential to close two loans and generate more referrals due to happy clients and referral sources!

Comments

Post a Comment

Popular posts from this blog

Four Regional Banks Discuss Settlement Over Foreclosures | Waccabuc Real Estate

-
Image
U.S. state attorneys general are pressing four banks to accept a legal settlement over botched foreclosures similar to a deal reached with larger competitors this year, according to three people briefed on the matter. U.S. Bancorp (SFBC) , PNC Financial Services Group (PNC) Inc., SunTrust Banks Inc. (STI) and HSBC Holdings Plc (HSBA) have held talks with state and federal officials who investigated claims that loan servicers mishandled foreclosure documents, according to the people, who spoke on condition of anonymity because the talks are private. U.S. Bancorp Said to Join PNC in Talks on Mortgage Settlement Jeff Kowalsky/Bloomberg Mortgage servicers typically handle billing and collections, as well as foreclosures when borrowers fail to pay. Neil Brazil , a spokesman for HSBC’s North America unit, said in an e-mail that the London-based lender has conducted “preliminary discussions with its bank regulators and other ...
Read more

Bedford Corners Real Estate by Robert Paul | 3 Perks of Google+ for Doctors: Spend a Little Time, Make Big Online Marketing Gains

-
Image
For doctors trying to reach their patients online, using Google+ can provide surprising marketing benefits that help them be more “findable” on the web. Consider that 44 percent of all Internet users search online to find information about health professionals, and suddenly the importance for doctors of having a good online presence should be more clear. In this article I’ll discuss three reasons why I think that, if you participate in Google+, the newest social network, you can improve the chances your name will come up when prospective patients search for something you’ve written about. If you’re not a doctor but you do know that many prospective clients use the web as a way to find you and your competitors, this article will also be relevant to you. 1. Rise in the Rankings First, participating in Google+ gives doctors an advantage because content you share on Google+ has an “edge” against other stories. That’s right–Google (the search engine) likes stories that’ve gotten sha...
Read more