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Macomb County MI Real estate

Macomb County MI real estate blog

Lots of mortgage news, trying to decipher it all, and what does it mean for the Macomb County MI consumer?

September 8th, 2008 · No Comments · fha mortgages and first time home buyers

  To say that the changes to the mortgage industry have been drastic, rapid and mind boggling would be an understatement.

Tomorrow I have a meeting with one of my trusted mortgage lenders, Mike Caira of Great Lakes Mortgage Funding, to discuss how we can best serve our clients and a “what the heck is going on?” meeting of the minds. 

If you’re read the paper over the weekend or turned on the news reports on your t.v. you’ve certainly heard by now that Fannie Mae and Freddie Mac have been taken over by the government in order to keep these two mortgage institutions solvent.

Simply put:  Fannie Mae and Freddie Mac are the purchasers of mortages.  They purchase them with money invested by others.    Too many of these mortgages went into default (foreclosure) and the investors not only lost money but they stopped investing in these mortgages.

What happened next?  In order to keep the mortgage money flowing so that those who wished to purchase a home could, the government has taken over Fannie Mae and Freddie Mac and will not only give it a huge chunk of money but they will now oversee the mortgage application process and I’m sure new rules and regulations won’t be far behind.

My thinking on this?   I believe interest rates will come down a bit as stability enters the mortgage market and cash is flowing again, but it will also come at a price.  The price could be even stricter guidelines for those who wish to purchase a home.

The best advice I could give to anyone thinking of buying a home in Macomb County MI (especially a first time home buyer) is to talk with a mortgage lender months in advance, partner up with a real estate agent to help you wade through the process, and pay your bills on time so your credit scores are as high as they can be.

~Kris Wales~ ©2008 All rights reserved

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Important copyright information: All photos were taken by Kris Wales. Do not copy and use photos for your own use, whether it be for personal or commercial purpose. All articles were written by Kris Wales. Once again, do not copy and use for your own purposes. Important disclaimer: Views expressed on the blog by the author and commenters do not express the views of Keller Williams Realty. All information contained is deemed to be reliable at the time of posting but not guaranteed.