Thought 1. Realtor Safety – another reason you need to have your buyers properly vetted before you show them property!
Since the recent tragic murder of an agent in Arkansas, there has been much conversation and concern about realtor safety when it comes to holding open houses and showing homes. Especially when the agent meets the prospective home buyer at the subject property for the first time.
Agents will have to work smarter. One reason to require that all your potential buyers go through the process and get pre-qualified is that you can be sure they are serious about buying. It is hard to imagine that someone with the intention of doing harm is going to go through a full credit review and income profile for a mortgage approval beforehand.
Buddy up at open houses. This is better for you and for the sellers since there will be more eyes charged with paying attention to the attendees.
Thought 2. Fannie and Freddie announce their intention to reduce down payment requirements to 3%
Members of the real estate press are pretty excited about the appearance of loosening underwriting guidelines. However, there is a disconnect on the consumer side. According to recent surveys, buyers have been under the misconception that purchasing real estate requires a down payment in excess of 10%. We have to educate our consumers that they can indeed purchase real estate with as little as 3% for a down payment in order to stimulate some more first time home buyer activity.
Thought 3. FICO 9 Model
Real estate media were also excited about is a new version of the FICO credit scoring model. It will treat medical collections differently and could have a positive impact on credit scores for people with derogatory medical collections on their reports. The good news is that there’s a new scoring model. The bad news is that Fannie Mae and Freddie Mac, and therefore the lending community at large, are not accepting the FICO 9 mode. In fact they are still operating on FICO 7… So, just because there is a new credit model in the works does not mean that it will have impact on real estate lending in the immediate future.
Have questions on any of the thoughts today? Ask us to help, we would love to work open houses with you to better serve you, your seller and to meet and support prospective buyers. Unclear on down payments and credit scores? Contact us, we will walk you and your clients through the process.