The question of-should I wait to buy for lower prices in the real estate market, is one
that I have been hearing a lot lately.

Honestly, in this lending environment my answer is no. The reason is due to
tightening with credit and down payment requirements and it could get even harder
to qualify in the near future and end up costing you even more for your home loan.

Fannie Mae and Freddie Mac , the two largest buyers of pooled mortgages are
imposing these added costs even to borrowers who have very good credit.
We have already seen the impact with additional fees for FICO scores below 720 and
down payment limitations recently in the past week.

Along with FICO scores and down payment, property type is now a factor and
considered a layer of added risk to the bank.

In other words if you're in the purchase market for a condominium your loan costs
could realistically be more than a person buying a single family home.
In addition, not only do you have to qualify but so does the property!

Everything is being looked at - the condo association, percentage of owner occupied
units in the building versus investment units, and the list goes on.
Banks are weighing their risk of the borrower and the property is no exception.

To sum up- why pay more than you have to right now. With all of these added costs
to get a loan today, down payment requirements in relation to your credit could get
even tougher for you to meet.
Benchmark Mortgage | 1750 E. Golf Rd., Suite 310 | Schaumburg. IL 60173
Illinois Residential Mortgage Licensee
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