Saturday, March 01, 2008
A lot has been said about the state of credit in the past 6 months.
In the past weeks, two people have mentioned to me that it's impossible to get a loan these days.
What do those two people have in common? Do they have bad credit? A recent foreclosure? No income?
No, no, and no. They are simply not looking to buy a place.
It's been stunning to hear that the public perception out of all the negative hype is that people are unable to buy; which couldn't be further than the truth.
The credit crunch is doing something good for the financing markets. It's making them more honest and appropriate. It's making the true professionals in the business stand out from the charlatans.
Financing lofts has always been a bit tricky. Many loan officers or brokers do loans on condos only on occasion. Being able to correctly choose a good lending program for a specific loft is a serious matter. Back in 2005, we posted on what a Warrantable and Non-Warrantable loft was and how it can affect financing . One aspect to downtown lofts that isn't typical to most condo associations is that the association shares it's space with commercial or retail entities. Sometimes that excludes some lending options. When we've had problems with lenders unable to finance a condo for any reason, a good lender has been able to pick up the ball and get the deal done.
Looking to buy? Contact a realtor to find a home. Looking for a good professional lender--ask the realtor.