Pensacola Area Real Estate - Mortgages

How does the current economic condition affect my ability to buy or sell a home?

Here is my take as I have experienced, and after speaking with a few local lenders this past week:

We have heard a lot of news about credit freezing up and tightening. It is all relative. Yes, credit has been tightening up over the last year, and it is certainly not as easily obtainable as in recent years. However, it is currently not as tight as it has been throughout history. If we look back, there have been times where 20% down was not uncommon and it was far more difficult or even impossible to get financing if one had struggling credit.

In order to purchase a primary residence or second home in today's market a 10-20% down payment is necessary for a conventional loan. Let's keep this in perspective - this is in order to borrow 80-90% to make the purchase.

Interest rates are hovering around a historical low of 6% fixed on a conventional 30 year loan.

Loans are available to those who qualify with good credit. In a nutshell, qualified buyers can make a home purchase if they have cash for down payment and closing costs.

Competition is steep when it comes to selling. Properties need to stand out amongst the crowd, and thus pricing needs to be of today's fair market value. Even in today's market, properties can sell quickly if priced right, and there are qualified buyers out there who can get financing for your property.

We are still buying and selling in today's market. Although it hurts, this is a correction that was absolutely needed, and we will be better off in the long run because of it.