Real Estate & Financing Update by Maurice

Happy Friday,

Rates are identical again for the third week in a row. Treasuries have been seesawing in a tight range since the start of the year, as traders question the pace of the economic recovery. While things have been looking up, the bond market already priced in signs of improvement at the end of 2010, and traders are now looking for something more to push it one way or the other. Many investors are taking a wait and see attitude about the degree of the actual recovery in the economy.

Underwriting times are still great and we have been very active in new credit approvals since the beginning of the year. IT IS A GREAT TIME TO BUY!! With prices at these levels and rates this low, this is the perfect opportunity. It is always a great market for someone (meaning the buyer or seller). This is the buyers spotlight dance.

Let’s talk about jumbo financing for a moment. We are constantly hearing people say there is “no jumbo money” which is holding down the jumbo purchase market from recovering. This could not be farther from the truth. We have several jumbo lenders and our standard underwriting goes to $5 million. Over $5 million we have to sell the loans individually to Wall Street, but we close them quite easily. The JUMBO MORTGAGE MARKET IS THRIVING!!

The most common problem with the jumbo market is that people want to do stated income loans with no documentation. That ship has sailed my friend. Show me the money! (income tax returns).

I hope have a great weekend planned. Remember, sometimes familiarity and comfort need to be challenged. Challenge yourself this weekend!!