SKIDDING, YOU MUST BE KIDDING.

Sales of existing homes continue to drop as evidenced by today's report. As I stated in previous blogs, there is a seven months inventory of properties on the market. If the trend continues, we will see that level increase to twelve months. This is bad news for sellers because we will have to wait until August of 2008 at the earliest, to notice some improvement.

We must be prepared to operate in a saturated market where mortgage professionals will have to work hard to assist all potential buyers by providing counseling, consultation beyond the regular loan application taking.

On the lending side, the trend toward tightening guidelines continues: gone are the no income verification programs, most if not all sub prime loans. Borrowers are now required to submit traditional (full) documentation:

w2s, paycheck stubs, tax returns, bank statements, 401k and explain every derogatory item on their credit reports.

A few measures currently going through Congress and the almost certain rates cuts by the Fed in the following months will help reduce the inventory. Those measures that I mentioned in "legislative updates" will also deal with the looming foreclosures.
The skid continues and I am not kidding!

If you are contemplating refinancing of purchasing, you owe it to yourself to enlist the services of an experienced mortgage originator. Call 773-562-6972 and ask for John Palla.