Access to mortgages a national problem * Or is it*

Access to mortgages a national problem --- Investors need to read then go to end for addtional information just for investors.

CAMPBELL, Calif. – Feb. 9, 2011 – Getting a mortgage today is so difficult that two out of three Americans (70.6 percent) consider it a serious problem, according to a national survey released by MortgageMatch.com, a website under Move Inc., a company that also oversees the National Association of Realtors®’ (NAR) Realtor.com.


Mortgage process

According to survey responses, understanding the mortgage process and coping with lenders’ requirements are the most challenging aspects of getting a mortgage today. Survey respondents ranked it more challenging (32.3 percent) than getting the mortgage itself (23 percent) or negotiating the sale price on the home (25.3 percent). In addition, three out of four (79 percent) recent home buyers, especially those earning $50,000 a year or more, said getting a mortgage was as difficult, or more, than they expected.

The survey found that today’s lending environment is so confusing that many borrowers experience high levels of stress and frustration, accompanied by the potential for distrust. One in five recent home buyers (20.9 percent) said that waiting to hear if they were approved for a mortgage caused more stress than waiting to hear if they got a job.

One in 10 borrowers (10.8 percent) say that their lender charged them a higher interest rate than what they were originally quoted, and 9.1 percent said their lender asked for seemingly inappropriate information. Almost twice as many female buyers (11.7 percent) as male buyers (6.4 percent) said they were asked for inappropriate information.

Adding to the confusion, nearly one-quarter (22.9 percent) said their lender’s documentation requirements kept changing. One in five borrowers (21.6 percent) said their lender used too much technical jargon, and 20.7 percent said finding a lender that was easy to work with proved challenging. Borrowers considered these particular problems more challenging than the amount of time it took to fund a loan (19.1 percent) or problems in qualifying due to their credit rating (6.9 percent).

In spite of frustrations and confusion, many recent buyers said they successfully secured loans and purchased homes in the past three years. Most were highly qualified buyers, with just over half (54.6 percent) reporting they had FICO scores exceeding 700. More than two-thirds (67.7 percent) of the survey respondents that successfully took out a mortgage said they put down less than 20 percent of the purchase price.

“This survey is a wake up call and clearly points to the fact that borrowers want a process that’s easy to understand and follow. They don’t want surprises and they want to be able to depend on their mortgage lender. For most people, the home buying process isn’t about the mortgage – it’s about getting a home,” said Sue Stewart, senior vice president at Move Inc.

First-time buyers

Stewart points out that the survey found strong evidence that first-time buyers will continue to be an important group in the next 36 months. According to the survey, three out of five (58.4 percent) Americans planning to purchase a home in the next three years identify themselves as first-time buyers. That’s significantly higher than the current market share of 33 percent, and a 21 percent increase from a Move Inc. survey taken in October 2009.

At the same time, the survey found that first-time home buyers are significantly more concerned than other buyers about the problems they face in getting a mortgage today by almost 13 percent.




Public policy

Public concern over mortgage financing also extends to public policy in 2011, but support for direct government intervention has softened since the height of the credit crisis in 2008. Americans now say President Obama’s top priorities should focus on helping at-risk homeowners avoid foreclosure (27 percent) and keeping interest rates low (27.9 percent).

Only 12.9 percent feel the president’s top priority should be to make more affordable housing credit available.

© 2011 Florida Realtors®


Investors are the ones that will make the market recover

Since banks wont lend money it opens allot of opportunities for investors offering owner financing.  There is usually less paperwork and very few hurdles that investors make buyers jump through while banks think its a circus and funny to make buyer jump through flaming rings of fire.

Investors make it easier and walk people through by explaining the process to someone who wants to own a home.  Investors treat their customers like people.  While banks treat people looking to buy a home as a money tree ripe for the plucking.

No surprise rate hikes at the last minute right before closing.  At least the bank could give the suckers some KY.

The documents are easier to understand from and investor and they use same basic easy to read forms and the banks have new ones every month or for every change during the confusing loan process.  Is it any wonder that people feel taken advantage of when they deal with the bank?

Buyer just wanted to be treated fairly.  Investors do that.
Buyer want to buy a HOME and not have any surprises during the process.
Investors explain the entire process to a buyer and use easy to read and use forms.
Investors make the process simple.

Andy Carson