There is little economic news today, as bank stocks continue to get hammered in the market, and interest rates remain about the same.
We keep getting asked by Realtors if 30 days is enough time to close escrow. It is more than enough time. We can close as fast a 14 days if necessary. The issue appears to that some of the major banks are quoting overall turn times for purchases as long as 45 days or more. We are always much faster than that, as we are careful to only use lenders with manageable turn-times.
An Agent called me yesterday with the following scenario: Two brothers wanted to buy a house together with a 20% down payment. One had decent credit and one had no credit. The buyer with decent credit had very little income, and the buyer with no credit had good income. They wanted to avoid FHA because of the “extra expense associated with it”. Unfortunately, FHA is the only option for such borrowers, as FHA is the program that allows borrowers with no credit “to build” credit with alternative sources like cell phone and insurance bills. In addition, FHA is the ONLY program that allows for co-signers to provide enough verifiable income to qualify for a loan.
Tomorrow we will discuss why the extra expense of FHA is often less than what it appears.
Lastly, we frequently get requests from Realtors that they be added on to our commentary distribution list, and we are of course always happy to do so. If you know of anybody who would like to receive our daily commentary, please feel free to let us know.
Call Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646