Recently, one of our prospective first-time home buyers posed the following question: “To be honest with you, I'm feeling a little apprehensive right now about the market. I know that houses are getting to be more affordable, but I'm concerned that I will have trouble getting a mortgage, or at least, a mortgage that I could afford. Do you think it would be wise to wait until I have a bit more cash on hand and then start looking? What do you think?”
We asked one of our favorite lenders, Connie Echeverria at Bank of America, to answer this question. Her excellent answer is below:
Hello there,
I would be happy to answer any questions that you may have regarding the state of the market. You can call me anytime-info below…
However, I find the simplest way to sum up what is happening/happened is that banks that were lending money to buyers that could not really afford to buy are no longer being allowed to do so. And buyers that were put in homes above their price point are no longer able to pay their mortgages, and so those banks are going under, and foreclosures are up.
Bank of America invested in neighborhoods that needed tax infrastructure (Bank of America’s Community Commitment Program) and we diversified our assets (bought LaSalle , MBNA, sponsors NFL, charity organizations, playgrounds, universities) to such a degree, that we were actually able to stabilize the mortgage market by purchasing several billion worth of Countrywide stock (we lent them the original $75,000 to start the bank J), amongst other things.
Mind you, we were never into the exotic type of loans that many brokers used to qualify buyers, so now, when everyone’s regulations are changing, we seem very exotic, simply because ours have stayed the same. Really, we are just stable…and we deliver consistently across the board.
My advice to you would be the following:
If you are curious about whether or not you should buy a home, now or in the future, ask yourself whether or not researching that prospect would be a worthwhile investment of your time. There is no monetary investment; your buyer orientation with Kevin and Michael is free; your pre approval and dialogue with me is…free. At the end of it all, you will have more knowledge, experience and comfort with something that may seem foreign to you now. Why wouldn’t you learn something new and look at pretty places where you may one day want to live while empowering yourself with knowledge?
Lastly, EVERYONE will want to give you advice on this subject. However, if YOU are the one to do the leg work, and in the end make the decision that it is NOT the right time for you, no matter what anyone else’s argument may be, you will never feel as if you may have missed out on something. You will be certain you made the right choice for you AND you will be prepped for another choice at any time…just keep reading and brushing up on what is going on, and when you are ready…that’s it. win-win...my favorite scenario!
Best of luck to you,
Cheers,
Connie Echeverria
Mortgage Loan Officer
The Krista Ellis Group
Bank of America Mortgage
3 Bethesda Metro, Suite 950
Bethesda, MD 20814
301-571-1407 direct
301-571-1444 fax
202-285-3937 cell
Connie.Echeverria@BankofAmerica.com
Yo Hablo Espanol
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