Lenders Starting to Tighten Up

Appraisals are receiving much more scrutiny, and lenders are asking some buyers to provide more down-payment cash.

Today, everyone from highflying bond investors to loan officers want more assurances that new loans won’t add to the losses that the country has experienced in the current credit crisis.

When I asked a client about if the declining market makes him hesitate investing in real estate, I was given this answer…”No, you need a place to live….I will be here at least five years. I am not under the false assumption that I am going to get rich. When you are renting, your losses come out to be $20,000 a year in rent plus tax breaks…”

I think things are slowly beginning to look up for the market, and I believe this is a direct result of lenders checking themselves and their clients.

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