What do the leaves in Autumn and interest rates have in common?

As the weather is starting to turn colder, it is clear that summer is long gone.  Fortunately, now, in addition to the leaves falling, the interest rates are falling as well.  Anybody who has an interest rate of 4.25% or higher should be asking themselves, “Can I save money by refinancing?”  For most people, the answer will be a resounding “Yes!”

In addition to an uptick in refinancings, the activity in the real estate market has been picking up over the past few weeks as well. Sellers and buyers are finally meeting on price.  Sellers have accepted that their properties are now worth 15-25% less than they were at the height of the market.  Buyers are realizing that values are starting to rise (albeit very slowly) and that coupled with these low interest rates they are really getting to buy homes “On Sale!”

Lending criteria has not gotten any looser, but it has become more consistent.  While I will avoid adding that it is “consistently bad” (since that it not really true), it can still be a real challenge to get loans approved.  The good news is that lenders are looking to lend and if you can stick with the process, most loans will close.

In this difficult lending environment, it is very important to work with a lender or broker who is very experienced.  They can help you navigate through the maze (yes “maze”) of documents and lender requests.  They will also be able to structure your loan in the best way possible so that it is more likely to get approved.

I am always available to act as your mortgage or real estate “sounding board.”  Feel free to call any time to discuss any property you may be looking to buy as well as any financing questions you may have.  As a real estate attorney for over 20 years, I also offer a legal perspective and understanding of the issues that few other mortgage bankers can offer.

I look forward to finding out how I can help you and those you know to purchase their dream home or save money on the loan they have on their existing dream home!

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