He says (actually, it was his very intelligent wife whom he quoted with full admiration and attribution), “Why feel urgency to borrow now, when we are clearly told that rates are going nowhere, and prices are feeble.”

Hard to argue with.  So, the Fed has drained urgency out of the housing market; the National Association of REALTORS® and REALTOR® members support that effort, and then in a disconnect, they work themselves into a lather with educational sessions and programs and seminars to learn how to “Create Buyer Urgency!”  Well, I have been hearing for 5 years that rates are going to go up.  And the Fed tells me I will likely hear it for a couple more years, as we witness ongoing record low mortgage rates.

And I am supposed to look like a goon and twist arms to “Create Buyer Urgency” because rates will go up?
Nope.  Not me.  If you are ready to buy a house, give me a call.  If not, think your way through it, and I will be around when you ARE ready.  No pressure.  No hassle.

Maybe instead of another silly 1st time buyers boondoggle, the Fed should just give us a road map plotting how and when rates will escalate.  It just might shake some money loose and get it into circulation.

“The FOMC left its benchmark interest rate in a range of zero to 0.25 percent, where it’s been since December 2008 and reiterated language from its August meeting that the rate is likely to stay very low through at least mid-2013.”

From Bloomberg By Scott Lanman and Craig Torres – Oct 13, 2011 12:00 AM ET

APR, Annual Percentage Rate Calculator

What is the real cost of your Home Loan?  You have to consider more than just the interest rate you were quoted.  Consider all the fees and charges to get the money for your new home, and you will see that the actual Annual Percentage Rate is nearly always higher than the interest rate you were quoted. 

Even better, when we find that new home in Cary, let me connect you with a great mortgage professional who will explain APR in detail for you, and deliver that affordable home loan package than best fits your needs.

Until then, Calcmoolator gave me a nice free calculator to help you make an educated guess at your APR:

Affordable Mortgage Calculator

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I picked up this Mortgage Affordability Calculator from Calcmoolator.  It is informal, but can help folks have a little fun comparing their finances to home costs, and to determine if affordable home ownership is feasible for them. Users should adjust taxes and insurance to reflect something closer to market value in Cary.

A listing agent or Seller will not accept these results as proof that a Buyer can afford a home. And a Buyers agent should not think a quick calculation like this is proof that the buyer can afford a home. The calculator is not a substitute for a prequalification session or a mortgage preapproval letter from a lender, but it can help folks gain some focus on some of the issues in home lending. Of course, if you want to step directly into working with a great mortgage banker, I always recommend Kevin Martini of SunTrust Mortgage.

Mike's Affordable Mortgage Calculator. Have Fun!

Kevin tells me that he has a huge variety of affordable home loan programs to help folks buy, and, of course, he is tickled with current interest rates he can offer.

A quick visit with Kevin Martini of SunTrust Mortgage, touching on the fact that as one of the premier mortgage bankers in the region, he probably has a home loan program for any client’s needs.
As a Buyers agent, I love working with Kevin. He produces!

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SunTrust Doctor Loan Program

My favorite mortgage banker, Kevin Martini of SunTrust Mortgage, passed the flyer above about SunTrust Mortgage’s Doctor Loan Program to me this week.  This program has some awesome real estate lending guidelines, tailored to the medical professional.

No down payment financing?  Possible.

Limits as high as $650,000 with 100% funding?  Possible.

Fixed or adjustable rates?  Interest only?  Possible.

And, to enhance the offering, this Doctor Loan Program is offered from one of the most professional mortgage bankers in the Triangle,

Kevin Martini of SunTrust Mortgage in Raleigh.  Kevin has helped many of my buyers in the Cary and Raleigh area with funding for their home purchases.

Take a look at the flyer, and give Kevin or me a call, and let’s see what we can do for you.

Like the mortgage broker who couldn’t get a loan through because his supervisor was putting his own business in priority in the queue while there was still USDA money for the period.

Like the agent missing closing because the lender’s warehouse has no funds.

Like the lender who has tried to take clients from the mortgage broker who submitted the application to cut the broker out of the deal.

Like the bank underwriter whose voicemail says, “Email me,” and then her email box is full.  No communication.  In this one, the file was set aside with no notice to my client, and it took a couple of days to find out why.  “Just because” may have been accurate.

And there is more.  While folks fuss about a “bailout,” the current key issue is liquidity, and the willingness and ability of banks to lend funds.  If they have the funds.

And, there are funds out there for qualified Buyers.  My money man tells us this week he is finished with “prequal letters” since they are nearly worthless.  “Pre-approvals” will finally be the norm, backed by pay stubs, employment confirmation, and credit pull with a credit score check.  For an antsy Seller who is concerned about a Buyer’s ability to perform on an offer, that level of due diligence is more important now than ever.  A contract termination is now a red flag to many skittish Buyers.

That Mortgage Preapproval is good for YOU!  To protect YOU!  To keep YOU from being hurt.

Too many folks hurt themselves by getting under contract on a home purchase when they can’t actually buy a house.  And then the problems start…

It is sad to see someone lose a home on a financing contingency.  It is painful to see someone who is struggling financially get into a contract, pay for inspections, surveys, put earnest money at risk, and not get financed due to obvious existing credit issues. 

It happens.  Hopes are dashed.  Very sad.  I see blog posts about it all the time.

Get pre-approved with a legitimate, reputable lender, either a mortgage banker or broker.  Press to know that they have done a thorough job in the process.  Be ready and confident you can buy, and that your desired property is affordable for you.  This is not the time to rush through the process.

If a few lenders cannot give you a preapproval letter, listen to the reasons why.  There may be simple issues that you can cure in a matter of weeks or months.  Or it may take longer.  If you sincerely want to help yourself, that good lender will be glad to offer some guidance to help you buy a home as soon as possible.

Make your real estate experience a pleasure.  Don’t waste your hard-earned money on a home you can’t buy!