Change #4 – Interest Rates
This one is a great thing. Rates have gone down over the last 3 years. Here’s how it typically works, when the economy is bad…rates are good. When the economy is good, rates are bad. There you go…it’s that simple. Well, there’s a little more to it than that but overall that’s the general idea. Currently with rates where they are at we have seen rates go up over the last 2 years and now are back down.
This creates a great opportunity for those of you to take advantage of the market and consider refinancing or better yet purchase a home. If you haven’t seen, it’s a buyers market. This means that all the buyers out there have the power, which means that not only can you get a great rate on your financing but houses are selling for cheaper. If you are on the fence about purchasing a home, now is the time to get off and move. You couldn’t have asked for a better time.
Change #5 – Loan Officer Licensing
Ok, here we go, the fifth and final change in the industry (obviously there’s more…but this is the last one I will talk about), loan officer licensing; now how does this affect you? Well, in Washington State alone up until December 2007 you were not required to be licensed to be a loan officer. This may shock some of you…yes, 2008 is the first year that every loan officer had to take a test and be licensed to originate loans. Let me repeat…What that means is that in 2007 and past, a used car salesman could get you a loan (no offense to all the used car salesmen).
How scary is that. A mortgage application is the most intrusive document you will ever come across and the individuals getting the information could be stealing your identity right in front of you. Well now it’s a safer environment…and it’s about to get better. Take a look at this article, then go to my blog and let me know if you think it’s a good idea or not… (<a href=”http://seattletimes.nwsource.com/html/realestate/2008047127_harney130.html”>http://seattletimes.nwsource.com/html/realestate/2008047127_harney130.html</a>).
So there you have it, hopefully this condenses some of the rumors or confusion with the changes in the industry. The best advice that I can give you is that if you are considering refinancing or better yet purchasing a home, talk with a loan officer who has their finger on the pulse of the market (you already know what I’m going to say…). Fell free to give me a call if you have any questions.