Good is No Longer Good Enough.

Just a quick note to help you or someone you care about.

 If you aren’t a mortgage geek like me, you probably haven’t been following the media’s reports on the number of home foreclosures predicted in the coming year.  Most, but not all of the foreclosures we have seen and will see are in the sub-prime market.  Sub-prime loans are there for people with lower credit scores or too much debt and even for self employed people who get creative on their taxes and don’t show much income.  These loans are not a bad option if they are used as a stepping stone to a better program. 

 Sub-prime loans and even “A” rated loans with an adjustable rate component are designed to give you security for a period of time.  After that, the rates typically go up and sometimes very quickly.   

Here is the part of the story the media is not telling you about.  Most of the people who are facing financial problems and even foreclosure are those that have not done anything to fix the problems that created the need for this type of loan originally.  Their rates are going to go up and now, they can’t qualify for the new loan they need to get out of the old one.  Unless you already have exceptional credit scores, this will cost you money too.      

Here’s why… Investors are ratcheting up the credit scores required for all loans.  The base credit scores that would get you the best loans just a few months ago won’t get you those loans today. 

We clearly see the direction the industry is going and we are taking proactive steps to help our clients understand that even though you may have good credit and good credit scores now, you ultimately will have to have great credit scores.   So what should you do?

If you or anyone you know has any kind of adjustable rate mortgage or doesn’t have exceptional credit scores yet, call us.  We can review where you’re at and create a plan to help you fix whatever needs fixing.  Many people are in the same boat.  A little planning now could save you a lot of grief in the future. 

This can’t wait.

Please call Alex at 425-252-1121 to set up
a time for us to talk.  We only need a few
minutes to make sure you are prepared.

Howard

Howard Bono
Your Mortgage Consultant for Life!
(425) 252-1121
www.oldwestmtg.com