My New Blog

Another fun day in Loanland.

There's some very good things starting to happen in the market. More programs are coming back into use and that's a grand sign for lots of folks looking to consolidate debt or reduce interest rates. And while rates are low, some people seem to not know it. A standard 30 year fixed rate is about 6% today. For a shorter term, like 3 or 5 year fixed, the rate is even less. No matter how you cut it those are very good rates.

Another place for good rates is in the commercial market. Apartments are fairing very well as new programs free up more equity and give lower payments. Remember commercial programs and qualifications are based on cash flow...and the relationship between income and out go actually determine the property value. And it's the property that qualifies for the loan not the borrower. So someone with shaky credit can buy a commercial property if the property has a good cash flow. And the appraisal is a reflection of condition, unlike residential appraisals which reflect other sold properties. In residential property you always hear the maxim location, location, location. In commercial it's cash flow. Location isn't a real issue if the cash is coming in.

A couple tips on buying property:

One, always check your credit so you know where you stand on being able to purchase, how much home can you afford. And two, always get pre-qualified. Your mortgage broker can handle this for you. And as we've said in a previous blog, check out the location you're buy in to be sure it's in a growth area. This one step, or misstep can cost you a ton of money and grief if not done properly.

By the way. There has been some lender auctions on foreclosed property. I didn't go but Renee and Virgil both went and were impressed. Lots of people and activity. And it seems that with an auction people just get into the buying frenzy ( I wonder if that's what they know will happen) and end up paying more than the property is listed for on MLS. That was happening. Still, you might want to check it out at the next offering, at the first of the year. If you think this would be your cup of tea you need to have cash in hand or be pre-qualified. As we get closer to the date I'll get you more info.