This is from an associate who does a ton of loans in any type of market.
If you like what he says, I will get you his information. I love what he says:
Common Misconceptions about Our Lending
Now is a bad time to purchase property
It’s better to get a loan directly from a bank in this credit
This couldn’t be further from the truth! We’ve seen bank guidelines change on a daily basis over the past 12 months. In this ever changing lending environment, you need to have as many options at your fingertips as possible. If you go directly to a bank for your financing, you’re limited by whatever that bank has to offer. What happens if the bank you choose suddenly changes their guidelines and you no longer qualify to finance your property through them? You’re likely going to be left scrambling to find new financing and will be starting completely from scratch, which will cause you to experience delays and additional costs. By doing your financing through a skilled broker such as myself, you will have all of the lending options at your fingertips and we can easily switch your loan from one bank to another with no additional cost. This ensures that you get the best available terms and that you avoid complications resulting from changes in a bank’s guidelines.
Banks don’t have any money to lend
While certain lenders have fallen out of the market, most of them are still lending as much as they were a year ago. The guidelines may have gotten more strict, but we have not seen a slowdown in how much tristate lenders are willing to lend. Moving forward, we expect that these lenders will be ready and willing to finance properties for qualified buyers without interruption. The trick is to know which lenders to pursue based on your circumstances and that’s the expertise that we provide.
I have to put at least 20% down regardless of the purchase
Not true! There are still lenders that are doing 90% financing (sometimes as high as 97% financing) for well-qualified buyers. While it is true the down payment guidelines have gotten more strict, there is not a steadfast rule that you have to put 20% down on every transaction. While many lenders will require 20% down in the higher price ranges ($1 million +), there are various lenders that are lending 90% financing on lower loan amounts on a regular basis.