The Red Deer Real Estate Market,a financing perspective

The drama in Ottawa continues, and bail outs in the US still making headlines, how does that affect us here?

Is there still money available and is the sky falling? 

Yes there is money available, and no the sky is not falling.

Recently i had an oppotunity to ask some of our colleagues in the mortgage industry, what the heck is going on.  Lean Riguidel with Universal Mortgage and Lesley Krawiec at The Get ‘Er Done Girls, thank you to ladies. 

The questions everyone wants to know are:

  • Is it easier or harder to get financing today?
    • It depends on where you go and what your personal situation is. You need to choose a mortgage broker that has been in the industry a long time and has a good reputation - that way your chances of obtaining financing will increase.
  • How has this changed from 2007?
    • While we do not have the all of the mortgage products available to us that we had in 2007, a good mortgage broker still has the tools to make it work.
  • What is the number one reason for a person being declined financing today?  Is this different from 2007?

    • Bad credit in 07 is still bad credit in 08. In other words the fundamentals of mortgage financing are still the same.What is the number one reason for a person being declined financing today?

    • The number one reason people are being declined mortgage financing with our company is poor credit. It is necessary that customers know what is reporting on their credit bureau and understand its impact when purchasing a home.

    • There are a number of contributing factors that make up a credit bureau/score in a mortgage transaction, all which are important for consumers to know and understand:
      • You must make all monthly payments on time

      • The amount of credit inquiries you have can lower your credit score

      • Reaching and over extending credit limits can lower your credit score

      • Too much outstanding credit can lower your credit score

      • Not having enough credit established can affect getting a mortgage approval

While some changes certainly have happened the best practices remain the best practices.  Take ownership of your finances and credit and you won't have an issue.  We all have credit available depending on our income.  The availability declines when we use it.  The key is to use it wisely.  Holding debt on your card especially close to the limit impacts the credit available as well as not paying you bills.  Not much of a shocker there is it?

What we are seeing more and more is the evaluation of the properties being purchased.  Each lender has different standards to which they will do so, and these practices are known to your mortgage professional.  The best advice on financing is your mortgage specialist.  They know the ins and outs and how to get the financing approved. 

Your friend in real estate,

Patrick Galesloot.

Patrick Galesloot

Patrick Galesloot

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